Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 63

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31, 2013: $\begin{array}{lr}\text { Common stock — } \$ 25 \text { par value, } 100,000 \text { shares authorized, 45,000 shares issued } & \$ 1,125,000 \\\text { and outstanding } \\\text { Paid-in capital in excess of par value, common stock } & 60,000\\\text { Retained earnings } & 460,000 \\\text { Total stockholders' equity }& \$ 1,645,000\end{array}$ In 2014, the following transactions affected its stockholders' equity accounts.
What is the journal entry required for the March 3 transaction?

• A) \(\begin{array}{|l|r|r|} \hline \text { Cash } & 28,000 & \\ \hline \text { Treasury Stock } & & 25,000 \\ \hline \text { Paid-In Capital, Treasury Stock } & & 3,000 \\ \hline \end{array}\)
• B) \(\begin{array}{|l|r|r|} \hline \text { Cash } & 28,000 & \\ \hline \text { Treasury Stock } & & 28,000 \\ \hline \end{array}\)
• C) \(\begin{array}{|l|r|r|} \hline \text { Cash } & 28,000 & \\ \hline \text { Treasury Stock } & & 27,000 \\ \hline \text { Paid-In Capital, Treasury Stock } & & 1,000 \\ \hline \end{array}\)
• D) \(\begin{array}{|l|r|r|} \hline \text { Cash } & 28,000 & \\ \hline \text { Common Stock } & & 25,000 \\ \hline \text { PaidIn Capital, Common Stock } & & 3,000 \\ \hline \end{array}\)
• E) \(\begin{array}{|l|r|r|} \hline \text { Cash } & 28,000 & \\ \hline \text { Retained Earnings } & & 28,000 \\ \hline \end{array}\)

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