**Dustin Corporation Financial Reporting Summary** Dustin Corporation provided the following financial data: - **Common Stock, $1 par value**: 200,000 shares authorized with 199,000 shares issued, totaling $199,000. - **Paid in Capital in Excess of Par—Common**: $21,000. - **Retained Earnings**: $207,000. **Question for Review:** What entry should be recorded for the corporation's purchase of 11,000 shares of its common stock at $7 per share? **Options:** - ○ Paid-In Capital from Treasury Stock Transactions is credited for $66,000. - ○ Treasury Stock—Common is credited for $66,000. - ○ Common Stock—$1 Par Value is credited for $77,000. - ○ Cash is credited for $77,000. Consider these options carefully to determine the appropriate accounting entry for the transaction.
**Dustin Corporation Financial Reporting Summary** Dustin Corporation provided the following financial data: - **Common Stock, $1 par value**: 200,000 shares authorized with 199,000 shares issued, totaling $199,000. - **Paid in Capital in Excess of Par—Common**: $21,000. - **Retained Earnings**: $207,000. **Question for Review:** What entry should be recorded for the corporation's purchase of 11,000 shares of its common stock at $7 per share? **Options:** - ○ Paid-In Capital from Treasury Stock Transactions is credited for $66,000. - ○ Treasury Stock—Common is credited for $66,000. - ○ Common Stock—$1 Par Value is credited for $77,000. - ○ Cash is credited for $77,000. Consider these options carefully to determine the appropriate accounting entry for the transaction.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Dustin Corporation Financial Reporting Summary**
Dustin Corporation provided the following financial data:
- **Common Stock, $1 par value**: 200,000 shares authorized with 199,000 shares issued, totaling $199,000.
- **Paid in Capital in Excess of Par—Common**: $21,000.
- **Retained Earnings**: $207,000.
**Question for Review:**
What entry should be recorded for the corporation's purchase of 11,000 shares of its common stock at $7 per share?
**Options:**
- ○ Paid-In Capital from Treasury Stock Transactions is credited for $66,000.
- ○ Treasury Stock—Common is credited for $66,000.
- ○ Common Stock—$1 Par Value is credited for $77,000.
- ○ Cash is credited for $77,000.
Consider these options carefully to determine the appropriate accounting entry for the transaction.
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