Use the Following Information for Questions

question 155

Multiple Choice

Use the following information for questions.
When Oslo Ltd. was organized last year, they issued 100,000 no par value common shares for $ 1,200,000. Earlier this year, the corporation purchased 4,000 of these shares at $ 15 per share, to be held in the treasury, and three months later, sold 2,000 treasury shares at $ 19 per share. There were no other treasury share transactions.
-If, instead of holding the 4,000 shares as treasury shares, Oslo had decided to cancel them, Oslo should debit

• A) Common Shares for $ 48,000 and Retained Earnings for $ 12,000.
• B) Contributed Surplus for $ 48,000 and Retained Earnings for $ 12,000.
• C) Contributed Surplus for $ 60,000.
• D) Common Shares for $ 60,000.

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Definitions:

Formula Copy

Copying an equation or formula in software applications in such a way that the references adjust relative to the position of the new copy.

System Date

The current date as recognized and displayed by an operating system or software application.

NOW Function

The NOW function is a formula used in spreadsheet applications to return the current date and time.

Default Option

A pre-selected choice or setting in software or devices, used unless another option is specified by the user.