Assuming a Corporation Has No Contributed Surplus Booked, When Shares

question 83

Multiple Choice

Assuming a corporation has no contributed surplus booked, when shares are reacquired at a cost greater than their original issue price and cancelled, what account(s) should be debited?

• A) the share account for the total cost
• B) the share account for the original issue price and contributed surplus for the additional amount
• C) the share account for the average per share amount and retained earnings for the additional amount
• D) the share account for the average per share amount and a loss account for the additional amount

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Definitions:

Revolutionary War

The conflict between the Thirteen American Colonies and British government between 1775 and 1783, which led to the colonies' independence as the United States of America.

Opening Battle

The first engagement or conflict in a war or series of battles, setting the tone and often influencing the course of the subsequent conflict.

Second Continental Congress

A convention of delegates from the Thirteen Colonies which started meeting in the spring of 1775, soon after warfare in the American Revolutionary War had begun.