A Corporation Originally Issued $9 Par Value Common Stock for $14

question 33

Multiple Choice

A corporation originally issued $9 par value common stock for $14 per share.It purchased the stock for $15 per share.Which of the following is included in the entry to record the sale of 60 shares of treasury stock for $19 per share?

• A)Paid-In Capital From Treasury Stock Transactions is credited for $1,140.
• B)Treasury Stock-Common is credited for $900.
• C)Treasury Stock-Common is credited for $1,140.
• D)Paid-In Capital From Treasury Stock Transactions is debited for $240.

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Definitions:

Loss

A decrease in net income that occurs when expenses exceed revenues, investments diminish in value, or assets are lost or damaged.

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions involving long-term liabilities, stockholders' equity, and changes in short-term loans that affect a company's cash flow.

Note Payable

A written agreement to pay a specific sum of money, usually including interest, at a future date.