A Company Purchases 600 Shares of Its $200 Par Value

question 180

Multiple Choice

A company purchases 600 shares of its $200 par value common stock at $220 per share.It then reissues 100 shares at $228 per share.The entry upon reissue of the stock would be:

• A) Cash 22,800
• Treasury Stock-Common 22,000
• Paid-in Capital,Treasury Stock 800
• B) Cash 22,800
• Treasury Stock-Common 22,800
• C) Cash 22,800
• Treasury Stock-Common 22,000
• Gain on Sale of Treasury Stock 800
• D) Cash 22,800
• Treasury Stock-Common 20,000
• Retained Earnings 2,800

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Definitions:

Prestige

The reputation or high standing of something or someone, often acquired through quality, achievements, or exclusivity.

Quality

The standard of something measured against other things of a similar kind; the degree of excellence of something.

Promotion

A marketing tactic that involves raising awareness of a brand, product, or service to increase sales or public visibility through various channels.

Availability

The degree to which a product, service, or resource is obtainable or accessible when needed.