Rosiland, Inc. purchases 16,000 shares of its previously issued $2 par value common stock for $460 per share. Which of the following is the correct journal entry to record this transaction?
A) Debit Common Stock—$2 Par Value $7,360,000, and credit Cash $7,360,000.
B) Debit Cash $7,328,000, and credit Paid-In Capital in Excess of Par—Common $7,328,000.
C) Debit Cash $7,328,000, and credit Treasury Stock—Common $7,328,000.
D) Debit Treasury Stock—Common $7,360,000, and credit Cash $7,360,000.
D) Debit Treasury Stock—Common $7,360,000, and credit Cash $7,360,000.
Explanation: 16,000 × $460 = $7,360,000
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