Ropers Inc

question 52

Multiple Choice

Ropers Inc.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:

Process Map

A visual representation of the steps involved in a process, showing how tasks are connected and flow from one to the next.

Target Costing

A pricing strategy in which the selling price of a product is determined first, and then the manufacturing cost is managed to meet the desired profit margin.

Value Engineering

A systematic method to improve the "value" of goods or products and services by using an examination of function.

Target Price

The price at which an investor aims to buy or sell a stock based on future price predictions.