Use the Following Information to Answer the Question Below

question 90

Multiple Choice

Use the following information to answer the question below. The following transactions involving Culbert Corporation occurred during the year:
The entry to record the June 5 transaction would be:

• A) Preferred Stock 6,000 Additional Paid-in Capital,Preferred 6,000 Treasury Stock,Preferred 12,000
• B) Treasury Stock,Preferred 12,000 Cash 12,000
• C) Cash 6,000 Treasury Stock,Preferred 6,000
• D) Preferred Stock 6,000 Additional Paid-in Capital,Preferred 6,000 Retained Earnings 12,000 Treasury Stock,Preferred 24,000

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Definitions:

Stopped Payment

is an instruction given to a bank by an account holder not to pay a check or transaction previously issued or arranged, usually due to disputes, errors, or lost checks.

$1,200 Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person.

Negotiable Promissory Note

A written, legally-binding promise to pay a specified sum of money either on-demand or at a set time, which can be transferred to others.