Which of the Following Entries Would Be Recorded When a Company

question 3

Multiple Choice

Which of the following entries would be recorded when a company reissues 1,000 shares of treasury stock for $40 per share when they were repurchased at a cost of $44 per share and have a $1 par value? $\begin{array}{lr}\text { A. Cash } & 40,000 \\\text { Capital in excess of par value } & 4,000 \\\text { Treasury Stock } && 44,000\end{array}$

$\begin{array}{lrr}\text { B. Cash } & 40,000 & \\\text { Loss on sale of treasury stock } & 4,000 & \\\text { Treasury Stock } & & 44,000\end{array}$

$\begin{array}{lrr}\text { C. Cash } & 40,000 & \\\text { Capital in excess of par value } & 4,000 & \\\text { Common Stock } & & 44,000\end{array}$

$\begin{array}{lrr}\text { D. Cash } & 40,000 & \\\text { Common Stock } & &1,000 \\\text { Capital in excess of par value } && 39,000\end{array}$

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

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Definitions:

Traditional Marketing

A method of promoting products and services through direct advertising using tools like print ads, television, radio, and direct mail.

Marketer

An individual or company that promotes or sells products or services to consumers or other businesses.