Use the Following Information for Questions

question 24

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.
-To record the sale of the 2,000 treasury shares, Oslo should credit

• A) Treasury Shares for $ 38,000.
• B) Treasury Shares for $ 20,000 and Contributed Surplus for $ 18,000.
• C) Treasury Shares for $ 30,000 and Contributed Surplus for $ 8,000.
• D) Treasury Shares for $ 30,000 and Retained Earnings for $ 8,000.

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Definitions:

Acceptance

The act of agreeing to the terms of an offer, contract, or proposal, creating a binding agreement.

Additional Terms

Supplementary conditions or provisions added to a contract that were not included in the original agreement.

Statute Of Frauds

A state statute under which certain types of contracts must be in writing to be enforceable.

Signed By Parties

Indicative of an agreement or document that has been formally endorsed or authenticated by those involved.