Prior to June 30,a Company Has Never Had Any Treasury

question 218

Multiple Choice

Prior to June 30,a company has never had any treasury stock transactions.A company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share.On July 20,it reissued 50 of these shares at $46 per share.On August 1,it reissued 20 of the shares at $38 per share.What is the journal entry necessary to record the reissuance of treasury stock on July 20?

• A)Debit Common Stock $2,300; credit Cash $2,300.
• B)Debit Common Stock $20; debit Treasury Stock $2,290; credit Cash $2,300.
• C)Debit Common Stock $2,300; credit Treasury Stock $2,000; credit Paid-In Capital,Treasury Stock $300.
• D)Debit Cash $2,300; credit Paid-in Capital,Treasury Stock $300; credit Treasury Stock $2,000.
• E)Debit Cash $2,300; credit Treasury Stock $2,300.

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