Which of the Following Entries Would Be Recorded When a Company

question 52

Multiple Choice

Which of the following entries would be recorded when a company reissues 1,000 shares of treasury stock for $50 per share when they were repurchased at a cost of $47 per share and have a $1 par value?
$\begin{array}{lr}\text { A. Cash } & 50,000 \\\text { Treasury Stock } & &47,000 \\\text { Capital in excess of par value } && 3,000\end{array}$

$\begin{array}{lr}\text { B. Cash } & 50,000 \\\text { Treasury Stock } & &47,000 \\\text { Retained earnings \( \quad \) \( \quad \) \( \quad \) \( \quad \) \( \quad \) } && 3,000\end{array}$

$\begin{array}{lrr}\text { C. Cash } & 50,000 & \\\text { Common Stock } & &1,000 \\\text { Capital in excess of par value } && 49,000\end{array}$

$\begin{array}{lrr}\text { D. Cash } & 50,000 & \\\text { Treasury Stock } & &47,000 \\\text { Gain on sale of treasury stock } && 3,000\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

---

Definitions:

Strong Relationship

A significant and intense association or correlation between two or more variables in a study or analysis.

Direct Correlation

A relationship between two variables such that as the value of one variable increases, the value of the other variable also increases, and vice versa.

Restricted Range

A situation in which the variability of a variable is constrained or limited, affecting statistical outcomes.

Moderate Relationship

A term describing a level of correlation between two variables that is neither weak nor strong, suggesting some degree of association but not a perfect or near-perfect linear relationship.