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

Distinguish between different types of punctuation used in business letters.

Recognize different letter styles and their applications in business communication.

Understand the significance of a well-structured content in business letters.

Identify common errors in letter preparation and know how to avoid them.

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Definitions:

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Down Payment

An initial payment made when something is bought on credit, representing a portion of the purchase price.

Bank Statement

A document issued by a bank detailing transactions, withdrawals, deposits, and the beginning and ending balance for an account over a specific period.

Reconcile

The process of ensuring that two sets of records or accounts are in agreement.