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In 200A, Y Company issued 5,000 shares of P10 par value common stock for P100 per share. In 200D. Y reacquired 2,000 of its shares at P150 per share from the estate of one of its deceased officers and immediately cancelled these 2,000 shares. Y uses the cost method in accounting for its treasury stock transactions. In connection with the retirement of these 2,000 shares, Y should debit Additional paid-in capital Retained earnings a. P 20,000          P280,000 b. P100,000         P180,000 c. P180,000          P100,000 d. P280,000        0

In 200A, Y Company issued 5,000 shares of P10 par value common stock for P100 per share. In 200D. Y reacquired 2,000 of its shares at P150 per share from the estate of one of its deceased officers and immediately cancelled these 2,000 shares. Y uses the cost method in accounting for its treasury stock transactions. In connection with the retirement of these 2,000 shares, Y should debit Additional paid-in capital Retained earnings a. P 20,000          P280,000 b. P100,000         P180,000 c. P180,000          P100,000 d. P280,000        0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 200A, Y Company issued 5,000 shares of P10 par value common stock for P100 per share. In 200D. Y reacquired 2,000 of its shares at P150 per share from the estate of one of its deceased officers and immediately cancelled these 2,000 shares. Y uses the cost method in accounting for its treasury stock transactions. In connection with the retirement of these 2,000 shares, Y should debit Additional paid-in capital Retained earnings

a. P 20,000          P280,000

b. P100,000         P180,000

c. P180,000          P100,000

d. P280,000        0

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