Please Refer to the Following Information for Peartree Company

question 120

Multiple Choice

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
-
If Peartree resold 1,000 shares of treasury stock for $24 per share, what journal entry would be required?

• A) Debit Treasury stock $24,000 and credit Cash $24,000.
• B) Debit Treasury stock $20,000, debit Paid-in capital $2,000 and credit Cash $24,000.
• C) Debit Cash $24,000 and credit Treasury stock $24,000.
• D) Debit Cash $24,000, credit Treasury stock $20,000 and credit Paid-in capital $4,000.

---

Definitions:

Systematic Desensitization

A behavior therapy that treats anxiety by teaching the client to associate deep relaxation with increasingly intense anxiety-producing situations.

Feared Situation

A scenario or setting that induces a heightened state of fear or anxiety in an individual.

Beck's Cognitive Therapy

A form of psychotherapy developed by Aaron T. Beck that identifies and helps change negative thought patterns and behaviors.

Illogical Thoughts

Thinking patterns that are irrational or lack sound reasoning.