What Is the Correct Journal Entry for the Following Transaction

question 38

Multiple Choice

What is the correct journal entry for the following transaction? Melton Industries acquired 360 shares of its own $12 par common stock for $23.

• A) Debit Treasury Stock-Common for $8,280 and Credit Cash for $8,280
• B) Debit Treasury Stock-Common for $4,320 and Credit Cash for $4,320
• C) Debit Cash for $8,280 and Credit Treasury Stock-Common for $8,280
• D) Debit Cash for $4,320 and Credit Treasury Stock-Common for $4,320

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Definitions:

Materials Requirement Plan

A system used in manufacturing to coordinate the supply of materials with production schedules to ensure that materials are available when needed.

Contingency Theories

A class of behavioral theory that contends that there is no one best way of organizing a corporation, leading a company, or making decisions, instead it depends on various situational factors.

Theory Y

A management concept that assumes employees are inherently motivated and can exercise self-control and self-direction in achieving objectives.

Subsystems

Subsystems are smaller components of a larger system.