The Shareholders' Equity Section of the Jason Company as of December

question 40

Essay

The shareholders' equity section of the Jason Company as of December 31, 2010 is as follows:
On January 15, the company repurchased 1,500 shares of its own stock at $60 for treasury stock. On January 16, as part of a compensation package, the company reissued half of the treasury shares to executives who exercised stock options for $20 per share. On January 28, the company reissued the remainder of the treasury stock on the open market for $65 per share. Which of the following would be included in the journal entry recorded on January 28?
a. a credit to Treasury Stock for $48,750.
b. a credit to Additional Paid-In Capital, Treasury Stock for $48,750.
c. a debit to Cash for $45,000.
d. a credit to Additional Paid-In Capital, Treasury Stock for $3,750.

---

Definitions:

ADLs

Activities of Daily Living; everyday tasks such as eating, bathing, dressing, toileting, and transferring (walking).

Glasgow Coma Scale

A neurologic scale designed to provide a consistent, objective method to document a person's level of consciousness at the time of initial evaluation and during follow-up assessments.

Head Injury

Physical trauma to the head, which can lead to various levels of brain impairment, ranging from mild concussions to severe brain damage.

Staphylococcal Meningitis

An infection of the protective membranes covering the brain and spinal cord caused by Staphylococcus bacteria.