Use the Following Information to Answer the Question Below $\$ 20$

question 63

Multiple Choice

Use the following information to answer the question below. The following transactions involving Lupine Corporation occurred during the year:
Apr. 1 Purchased 2,000 shares of its own preferred stock for $\$ 20$ , the current market price. This is the first transaction involving its own stock engaged in by the company.

May 3 Sold 400 of the shares purchased on April 1 for \$25 per share.
June 5 Retired 600 of the shares purchased on April 1. The original issue price was $\$ 10$ . The par value of the stock is $\$ 5$ .

The entry to record the June 5 transaction would be:

• A)
• \(\begin{array}{l}
• \text { Preferred Stock } & 3,000 \\
• \text { Additional Paid in Capital, Preferred } & 3,000\\
• \text { Treasury Stock, Preferred }&&6,000
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text {Treasury Stock, Preferred } & 6,000\\
• \text { Cash}&& 6,000
• \end{array}\)
• C)
• \(\begin{array}{l}
• \text {Cash } & 3,000\\
• \text { Treasury Stock, Preferred }&& 3,000
• \end{array}\)
• D)
• \(\begin{array} { l l } \text { Preferred Stock } & 3,000 \\ \text { Additional Paid in Capital, Preferred } & 3,000 \\ \text { Retained Earnings } & 6,000\\\text {Treasury Stock, Preferred}&&12,000 \end{array}\)

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Definitions:

Narcissism

A characteristic of personality defined by an exaggerated view of one's own worth, a strong desire for others' adoration, and an absence of compassion for others.

Introversion

A personality trait characterized by a focus on internal thoughts and feelings rather than seeking external stimulation.

Environmental Stimulation

Exposure to external stimuli or conditions that affect growth, development, and behavior.

Tendency

An inclination towards a particular characteristic, behavior, or pattern of thought.