The Shareholders' Equity Section of Jason Company as of December

question 64

Essay

The shareholders' equity section of Jason Company as of December 31, 2010 follows:
On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?
a. a credit to Retained Earnings for $90,000.
b. a debit to Cash for $90,000.
c. a debit to Treasury Stock for $90,000.
d. a debit to Common Stock for $90,000.

---

Definitions:

Units Sold

The total quantity of products that have been sold during a particular period.

Break-Even Point

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Cost Estimation

The process of predicting the costs associated with a particular action or project, crucial for budgeting and project planning.

Operating Leverage

A measure of how sensitive net operating income is to a given percentage change in unit sales.