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:

Casual Exchanges

Informal interactions or conversations that do not adhere to a strict structure or topic, often occurring spontaneously in social settings.

Routine Inquiry

A standard or regular question posed to obtain information or clarification on a specific matter.

Recommended Plan

A suggested course of action or strategy devised for a specific purpose or goal.

Internal Operational Messages

Communications within an organization that relate to its routine activities and functions.