Use the Following Information to Answer the Question Below $\quad$ Purchased 2,000 Shares of Its Own Preferred Stock for $20

question 10

Multiple Choice

Use the following information to answer the question below. The following transactions involving Cactus Wren Corporation occurred during the year:
Apr. 1 $\quad$ 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 $\quad$ Sold 400 of the shares purchased on April 1 for $25 per share.
June 5 $\quad$ 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 April 1 transaction is :

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Definitions:

Cash Register Tape

A paper roll or digital record used in cash registers to record transactions made during a business day.

Owner's Equity

The residual interest in the assets of a company after deducting liabilities.

Trial Balance

A trial balance is a bookkeeping report that lists the balances in each of an organization's general ledger accounts.

General Ledger

A complete record of all financial transactions over the life of a company, serving as the primary source for generating financial statements.