A Corporation Originally Issued $7 Par Value Common Stock for $13

question 22

Multiple Choice

A corporation originally issued $7 par value common stock for $13 per share.It purchased the stock for $17 per share.Which of the following is included in the entry to record the sale of 20 shares of treasury stock for $18 per share?

• A) Paid-In Capital from Treasury Stock Transactions is credited for $360.
• B) Treasury Stock-Common is credited for $340.
• C) Treasury Stock-Common is credited for $360.
• D) Paid-In Capital from Treasury Stock Transactions is debited for $20.

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Definitions:

Factory Utilities

Expenses incurred for electricity, gas, water, and sewage services used in the operation of a manufacturing plant or factory.

Plantwide Overhead Rate

A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the department in which they were made.

Labor Intensive

A process or industry that requires a large amount of labor to produce its goods or services, as opposed to being heavily automated.

Mechanized Work

Work processes that are performed using machinery and equipment to enhance efficiency and productivity.