A Corporation Originally Issued $5 Par Value Common Stock for $6

question 62

Multiple Choice

A corporation originally issued $5 par value common stock for $6 per share. Which of the following would be included in the entry to record the purchase of 300 shares of treasury stock for $10 per share?

• A)Treasury Stock-Common would be debited for $3,000.
• B)Treasury Stock-Common would be credited for $1,800.
• C)Retained Earnings would be debited for $1,500.
• D)Treasury Stock-Common would be debited for $1,500.

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Definitions:

Monatomic Ions

Ions formed from a single atom through the loss or gain of electrons, resulting in a positive or negative charge.

Water-based Solution

A water-based solution is a mixture in which water serves as the solvent, dissolving another substance, known as the solute.

Strong Electrolyte

A substance that completely dissociates into ions in solution, conducting electricity efficiently.

Electrolyte

A material that, when dissolved in a polar solvent like water, yields a solution capable of conducting electricity.