Herman Inc. has 180,000 shares of $5 par common stock outstanding at the beginning of the year 2022. The following transactions affecting stockholders’ equity occured suring the year. Assume Paid-in Capital—Treasury Stock has a zero beginning balance. · January 15: Purchased common stock as treasury shares, 6,000 shares at $20. · April 15: Sold common
Herman Inc. has 180,000 shares of $5 par common stock outstanding at the beginning of the year 2022. The following transactions affecting stockholders’ equity occured suring the year. Assume Paid-in Capital—Treasury Stock has a zero beginning balance. · January 15: Purchased common stock as treasury shares, 6,000 shares at $20. · April 15: Sold common
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Herman Inc. has 180,000 shares of $5 par common stock outstanding at the beginning of the year 2022. The following
transactions affecting
beginning balance.
· January 15: Purchased common stock as treasury shares, 6,000 shares at $20.
· April 15: Sold common treasury stock, 2,400 shares at $14.
The
A) A credit to Treasury Stock for $120,000
B) A debit to
C) A debit to Treasury Stock for $48,000
D) A debit to Paid-in-Capital, Treasury Stock for $14,400
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