A Company Purchases 600 Shares of Its $100 Par Value

question 15

Multiple Choice

A company purchases 600 shares of its $100 par value common stock at $110 per share.It then reissues 100 shares at $114 per share.The entry upon reissue of the stock would be:

• A)
• \(\begin{array} { l r r }
• \text { Cash } & 11,400 & \\
• \text { Treasury Stock-Common } & & 11,000 \\
• \text { Paid-in Capital, Treasury Stock } && 400
• \end{array}\)
• B)
• \(\begin{array}{ll}
• \text { Cash } & 11,400 \\
• \text { Treasury Stock-Common } &&11,400
• \end{array}\)
• C)
• \(\begin{array}{l}
• \text { Cash }&11,400\\
• \text { Treasury Stock-Common } && 11,000 \\
• \text { Gain on Sale of Treasury Stock } && 400
• \end{array}\)
• D)
• \(\begin{array}{l}
• \text { Cash }&11,400\\
• \text { Treasury Stock-Common } && 10,000 \\
• \text { Retained Earnings } && 1,400
• \end{array}\)

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Definitions:

Inferences

are conclusions or judgments based on evidence and reasoning rather than explicit statements.

Collectivistic Culture

A societal framework that emphasizes the group over the individual, fostering strong ties between individuals and prioritizing group goals over personal achievements.

Describe Yourself

A prompt asking an individual to provide a self-assessment or personal narrative about their characteristics, experiences, and/or qualities.

Individualistic Culture

A societal framework that emphasizes personal freedom, individual goals, and the value of personal achievements over group objectives.