Use the following information to answer the question below. The following transactions involving Lupine Corporation occurred during the year: Apr. 1 Purchased 2,000 shares of its own preferred stock for $20, the current market price. This is the first transaction involving its own stock engaged in by the company. May 3 Sold 400 of the shares purchased on April 1 for $25 per share. June 5 Retired
600 of the shares purchased on April 1 . The original issue price was $10 . The par value of the stock is $5. The entry to record the June 5 transaction would be:
a. Preferred Stock 3,000
Additional Paid in Capital, Preferred 3,000
Treasury Stock, Preferred 6,000
b. Treasury Stock, Preferred 6,000
Cash 6,000
c. Cash 3,000
Treasury Stock, Preferred 3,000
d. Preferred Stock 3,000
Additional Paid in Capital, Preferred 3,000
Retained Earnings 6,000
Treasury Stock, Preferred 12,000
D
You might also like to view...
What is the marketing term for setting a price?
A. promotion B. segmentation C. benefit exchange D. competitive advantage
A system of producing inventory where goods are produced only when needed by a customer or work center is referred to as a _________________________
Fill in the blank(s) with correct word
What is the role of organizational culture?
a. Provide norms for individual and organizational behavior. b. Create a sense of community. c. Guide strategy development. d. Enable employees to "unlearn" obsolete information and practices. e. Focus the firm's attention externally.
A July sales forecast projects that 6,000 units are going to be sold at a price of $10.50 per unit. Management forecasts 2% growth in sales each month. Total July sales are anticipated to be:
A. $60,000. B. $63,000. C. $67,500. D. $61,250. E. $64,260.