Please Refer to the Following Information for Peartree Company

question 29

Multiple Choice

Please refer to the following information for Peartree Company: If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what journal entry will be required?

• A)Debit Treasury stock $18,000 and credit Retained earnings $18,000.
• B)Debit Treasury stock $20,000, credit Loss on sale $2,000 and credit Cash $18,000.
• C)Debit Treasury stock $18,000 and credit Cash $18,000.
• D)Debit Cash $18,000 and credit Treasury stock $18,000.