Please Refer to the Following Information for Peartree Company

question 11

Multiple Choice

Please refer to the following information for Peartree Company: (Assume there are no balances in Paid-in capital from treasury stock transactions.)
If Peartree resold 800 shares of treasury stock for $15 per share, what journal entry would be required?

• A)Debit Treasury stock $16,000, debit Loss on sale $4,000 and credit Cash $20,000.
• B)Debit Treasury stock $12,000 and credit Cash $12,000.
• C)Debit Cash $12,000 and credit Treasury stock $12,000.
• D)Debit Cash $12,000, debit Retained earnings $4,000 and credit Treasury stock $16,000.

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Definitions:

Comfort Or Luxury

Products or services designed to provide an enhanced level of ease, well-being, or indulgence beyond basic necessities.

Self-preservation

The instinctual behavior to protect oneself from harm or danger.

Psychological Reasons

Underlying mental or emotional factors that influence an individual's decisions or behaviors.

Economic Wants

Desires for specific goods, services, or experiences that can be fulfilled through economic transactions.