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 April 1 transaction would be:
a. Cash 40,000
Treasury Stock, Preferred 40,000
b. Retained Earnings 40,000
Cash 40,000
c. Paid-in Capital, Preferred 40,000
Treasury Stock, Preferred 40,000
d. Treasury Stock, Preferred 40,000
Cash 40,000
D
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