Bobber Corporation Purchased 1,000 Shares of Its Own $1 Par

question 70

Multiple Choice

Bobber Corporation purchased 1,000 shares of its own $1 par value common stock at $10 per share.This was the first time the company had ever purchased treasury stock.Shortly thereafter,Bobber sold 100 shares of this treasury stock at $13 per share.The journal entry to record the sale of the treasury stock would include a:

• A)credit to Gain on Sale of Treasury Stock $300
• B)debit to Treasury Stock for $100
• C)debit to Retained Earnings for $1,300
• D)credit to Paid-in-Capital from Treasury Stock Transactions for $300

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Definitions:

Crespi

Refers to psychologist Leonard Crespi, known for his work in experimental psychology, especially in motivational research involving rewards.

Hunger Rats

Rats that are used in research studies to investigate the physiological, psychological, and behavioral processes related to hunger and satiety.

Reward

A positive reinforcement that increases the likelihood of a behavior being repeated.

Anticipatory Goal Responses

Behavioral or physiological responses that occur in anticipation of achieving a goal, often motivating the individual towards the goal.