On April 1, 2009, Jetter Corporation Reacquired 2,000 Shares of Its

question 133

Multiple Choice

On April 1, 2009, Jetter Corporation reacquired 2,000 shares of its own $10 par share for $120,000 cash. On October 15, 2009, 600 of the treasury shares were reissued at a price of $65 per share.


-Refer to the above data. Assuming there are no further transactions involving treasury share in 2006, the financial statements of Jetter Corporation for 2009 will show:

• A) Treasury Share of $81,000 among the assets in the balance sheet.
• B) Gain on Sale of Treasury Share of $3,000 in the income statement for 2009.
• C) Treasury Share of $120,000 as a deduction in the shareholders' equity section of the December 31, 2009, balance sheet.
• D) Share Premium: Treasury Share Transactions of $3,000 in the December 31, 2009 balance sheet.

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Definitions:

R

A symbol often used to represent resistance in electrical circuits, measured in ohms.

RC Parallel Circuit

An electrical circuit consisting of a resistor (R) and a capacitor (C) connected in parallel with each other.

RC Parallel Circuit

An electrical circuit configuration consisting of resistors (R) and capacitors (C) connected in parallel, affecting current and voltage differently.

R

Symbol commonly used to denote resistance in electrical circuits, measured in ohms (Ω).