Vision Corporation Has the Following Information on Its Financial Statement

question 33

Multiple Choice

Vision Corporation has the following information on its financial statement:
$\begin{array}{lr}\text { Preference share } 6 \%, \$ 100 \text { par, non-cumulative, } 10,000 \text { shares authorized } & \$ 450,000 \\\text { Ordinary shares, } \$ 3 \text { par, } 500,000 \text { shares authorized, } 240,000 \text { issued } & 720,000 \\\text { Share premium: preference shares } & 750,000 \\\text { Share premium: ordinary shares } & 3,000,000 \\\text { Retained earnings } & 1,1192,500\end{array}$


-Refer to the above data. If Vision decided to purchase 50,000 ordinary shares to be used for future share option plans at $9.50 per share, what journal entry would they make?
A.
$\begin{array}{lll}\text { Treasury Share } & 475,000 & \\\text { Ordinary Share } & & 475,000\end{array}$

B.
$\begin{array}{lll}\text { Retained Earnings } & 475,000 & \\\text { Treasury Share } & & 475,000\end{array}$

C.
$\begin{array}{lll}\text { Treasury Share } & 475,000 & \\\quad \text { Cash } & & 475,000\end{array}$

D.
$\begin{array}{ll}\text { Treasury Share } & 150,000 \\\text { Share Premium } & 325,000\\\text { Cash } & & 475,000\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow, especially when the forearm is in a midposition between pronation and supination.

Biceps Brachii

A muscle of the upper arm that flexes the elbow and rotates the forearm, consisting of two heads that join on the radius.

Triceps Brachii

A muscle of the back of the upper arm responsible for extension of the elbow.

Anconeus

A small muscle located at the elbow, involved in extending the elbow and stabilizing the elbow joint.