Which One of the Following Is the Correct Entry to Record

question 74

Multiple Choice

Which one of the following is the correct entry to record the sale of treasury stock?

• A) \(\begin{array} { l l l } DR &\text { Cash } & 128,000 \\CR & \text { Common stock } & & 128,000 \end{array}\)
• B) DR\(\quad\)Cash \(\quad 128,000\)
• \(\quad\)CR Treasury stock \(\quad 96,000\)
• \(\quad\)CR Paid in capital in excess of par \(\quad\)32,000
• C) \(\begin{array}{l}
• \text { DR }& \text { Cash } &128,000 \\
• \text { CR } & \text { Treasury stock } & 96,000 \\
• \text { CR } & \text { Gain on sale of treasury stock } & 32,000
• \end{array}\)
• D) \(\begin{array} { l l l l l }
• \text { DR } & & \text { Cash } & 128,000 & \\
• & \text { CR } & \text { Treasury stock } & 96,000 \\
• & \text { CR } & \text { Retained earnings } & 32,000
• \end{array}\)

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Definitions:

MTS (Make-to-Stock)

A production strategy where companies manufacture products in anticipation of demand and keep an inventory to quickly meet that demand.

Production Managers

Professionals responsible for overseeing the manufacturing processes, ensuring that production runs smoothly, efficiently, and meets quality standards.

Workcenter

A specific physical location where tasks are performed, often used in manufacturing and project planning.

Manufacturing Cell

An arrangement of machinery and workers in which the production process is broken down into simpler steps, and all necessary equipment and staff are located close to each other to increase efficiency.