Duke Corporation Reports the Following Components of Stockholders' Equity on December

question 118

Multiple Choice

Duke Corporation reports the following components of stockholders' equity on December 31,2010.
$\begin{array}{lr} \text {Common stock- \( \$ 25 \) par value, 100,000 shares authorized, 45,000 shares issued}\\ \text { and outstandino}&\$1,125,000\\ \text { Paid-in capital in excess of par value, common stock } & 60,000 \\ \text { Retained earnings } & 460,000 \\ \text { Total stockholders' equity } & \$ 1,645,000 \\\end{array}$

In year 2011,the following transactions affected its stockholders' equity accounts.
Jan. 1 Purchased 4,500 shares of its own stock at $\$ 27$ cash per share.
Jan. 5 Directors declared a $\$ 3$ per share cash dividend payable on Feb. 28 to the Feb. stockholders of record.

Feb. 28 Paid the dividend declared on January 5.
Mar. 3 Sold 1,000 shares of treasury stock for $\$ 28$ per share

What is the journal entry required for the March 3^rd transaction?

• A)
• \[\begin{array} { |l| r | r | }
• \hline \text { Cash } & 28,000 & \\
• \hline \text { Treasury Stock } & & 25,000 \\
• \hline \text { Paid in Capital, Treasury Stock } & & 3,000 \\
• \hline
• \end{array}\]
• B)
• \(\begin{array}{|l|r|r|}
• \hline \text { Cash } & 28,000 & \\
• \hline \text { Treasury Stock } & & 28,000 \\
• \hline
• \end{array}\)
• C)
• \[\begin{array} { |l | r | r | }
• \hline \text { Cash } & 28,000 & \\
• \hline \text { Treasury Stock } & & 27,000 \\
• \hline \text { Paid in Capital, Treasury Stock } & & 1,000 \\
• \hline
• \end{array}\]
• D)
• \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 28,000 & \\
• \hline \text { Common Stock } & & 25,000 \\
• \hline \text { Paid in Capital, Common Stock } & & 3,000 \\
• \hline
• \end{array}\]
• E)
• \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 28,000 & \\
• \hline \text { Retained Earnings } & &2 8 , 0 0 0 \\
• \hline
• \end{array}\]

---

Definitions:

Internal Satisfaction

The level of contentment among employees within an organization, typically reflecting the workplace environment, culture, and rewards.

Sociology

The study of the development, structure, and functioning of human society and social relationships.

Theology

The study of the nature of the divine, religious beliefs, and the practice of religious faiths.

Biology

The scientific study of life and living organisms, including their structure, function, growth, evolution, and distribution.