Please Refer to the Following Information for Petra Sales Company

question 13

Multiple Choice

Please refer to the following information for Petra Sales Company: If Petra Sales purchases an additional 5,000 shares of treasury stock at $14 per share, what journal entry is required?

• A)Debit Cash $70,000 and credit Treasury stock $70,000.
• B)Debit Treasury stock $70,000 and credit Cash $70,000.
• C)Debit Treasury stock $70,000 and credit Sales revenue $70,000.
• D)Debit Treasury stock $60,000, debit Paid-in capital $10,000 and credit Cash $70,000.

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