Assume That a Company Issued 10,000 Shares for $30/share

question 29

Multiple Choice

Assume that a company issued 10,000 shares for $30/share.What entry would be required to record the repurchase and cancellation of 1,000 shares at $28/share?

• A)Credit to common shares for $28,000
• B)Credit to common shares for $30,000
• C)Credit to contributed surplus for $29,000
• D)Credit to contributed surplus for $2,000

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Definitions:

Accountant & Taxes

Pertains to the work of keeping financial records, preparing tax returns, and advising on tax liabilities.

Cash Basis Accounting

An accounting method in which revenues and expenses are recorded only when cash is received or paid out, not when the transaction occurs.

Goods

Physical items that are produced or purchased for sale.

Services

Intangible products such as expertise, assistance, or access to resources provided by businesses or professionals.