Rick Co Purchases 7,000 Shares of Its Own $2 Par Value

question 130

Multiple Choice

Rick Co. purchases 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this transaction?

• A)Debit Common Stock-$2 Par Value $2,240,000 and credit Cash $2,240,000.
• B)Debit Cash $2,240,000, and credit Paid-In Capital in Excess of Par-Common $2,240,000.
• C)Debit Cash $2,240,000 and credit Treasury Stock-Common $2,240,000.
• D)Debit Treasury Stock-Common $1,120,000 and credit Cash $1,120,000.

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Definitions:

Neurons

Cells of the nervous system specialized in conducting electrical impulses, allowing communication between the brain and different parts of the body.

Brain Volume

The total space occupied by brain tissue, often measured in neurological studies as an indicator of brain health and development.

Nerve Impulse

An electrical signal that travels along the nerve fiber, transmitting information between neurons and other cells.

Dendrite

The branched projections of neurons that receive electrochemical signals from other nerve cells.