Rakish Co Purchases 3,500 Shares of Its Own $1 Par Value

question 71

Multiple Choice

Rakish Co. purchases 3,500 shares of its own $1 par value common stock for $80 per share. Which of the following is the correct journal entry to record this transaction?

• A) Debit Common stock $3,500, debit Paid-in capital $276,500 and credit Cash $280,000.
• B) Debit Cash $280,000, credit Common stock $3,500 and credit Paid-in capital $276,500.
• C) Debit Cash $280,000 and credit Treasury stock $280,000.
• D) Debit Treasury stock $280,000 and credit Cash $280,000.

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Definitions:

Annual Incomes

The total amount of money earned by an individual or entity in one year.

Media Violence

Exposure to violent behavior or scenarios through various forms of media, often discussed in relation to its potential impact on behavior.

Aggression

Behavior intended to harm or intimidate others, whether physically or verbally.

Aggressiveness

The quality of being bold or assertive in stance or approach; in psychology, it refers to behaviors or tendencies that may lead to harm or confrontational interactions.