Bravo Bistro, Inc The stockholders' equity section of the December 31, 2011, balance sheet for Bravo Bistro appeared as follows: Common stock, $3 par, 2,000 shares issued and outstanding $ 6,000 Additional paid-in capital 1,000 Retained earnings 5,400 Total stockholders' equity $12,400 Assume that all of the 2,000 shares of Bravo's stock that was issued as of December 31, 2011, was issued for
$3.50 per share. On March 1, 2012, Bravo reacquired 1,000 shares of its common stock for $4.50 per share. Refer to the information presented above for Bravo Bistro, Inc If all of the 1,000 shares that Bravo Bistro repurchased on March 1 were later reissued for $5.00 per share, the journal entry to record this transaction includes a debit to what account and for what amount?
A) $4,000 to additional paid-in capital from treasury stock transactions
B) $2,000 to treasury stock
C) $500 to retained earnings
D) $5,000 to cash
D
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