The Shareholders' Equity Section of Jason Company as of December

question 78

Multiple Choice

The shareholders' equity section of Jason Company as of December 31, 2017 follows:
$$\begin{array} { | l | r | } \hline \text { Comman stock } & \$ 180,000 \\\hline \text { Additional paid-in capital (Comman stock) } & 110,000 \\\hline \text { Retained earnings } & 160,000 \\\hline \text { Total sharehalders' equity } & \$ 450,000 \\\hline\end{array}$$
On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?

• A)a credit to Retained Earnings for $90,000.
• B)a debit to Cash for $90,000.
• C)a debit to Treasury Stock for $90,000.
• D)a debit to Common Stock for $90,000.

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Definitions:

Classifying

The process of systematically arranging business transactions or financial statements' components into categorized groups for analysis and reporting.

Bookkeeping

The recording function of the accounting process.

Accounting

A system that measures the business’s activities in financial terms, provides written reports and financial statements about those activities, and communicates these reports to decision makers and others.

Investors

Individuals or institutions that commit capital with the expectation of receiving financial returns.