Use the Information Above to Answer the Following Question

question 56

Multiple Choice

Use the information above to answer the following question.What journal entry will record the purchase of the stock on January 20?

• A) Debit Treasury Stock for $8,000, debit Additional Paid-in Capital for $24,000, and credit Cash for $32,000
• B) Debit Treasury Stock and credit Cash for $32,000
• C) Debit Treasury Stock for $8,000, debit Common Stock for $24,000, and credit Cash for $32,000
• D) Debit Common Stock and credit Cash for $32,000

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Definitions:

Monthly Billing

A billing system where charges for services or goods are invoiced or billed on a monthly basis.

Computerized Billing

This pertains to the use of computer systems and software to manage billing processes, often automating many aspects of invoicing, tracking payments, and account management.

Monthly Billing

A billing system where charges for services or utilities are invoiced to customers on a monthly basis.

Computerized Billing

The use of digital systems to issue and manage invoices and billing for goods and services.