Question

A corporation originally issued $13 par value common stock for $15 per share. Which of the following is included in the entry to record the purchase of 300 shares of treasury stock for $11 per share?
A. Treasury Stock-Common is debited for $3,300.
B. Treasury Stock-Cormmon is debited for $1,650.
C. Retained Earnings is debited for $1,660.
D. Treasury Stock-Common is oodied for $46.

Answer 1

Answer:

A. Treasury Stock-Common is debited for $3,300.

Explanation:

Cost of the treasury stock purchased = 300 shares of treasury stock * $11  per share

Cost of the treasury stock purchased = $3,300