Kapper Company purchased 2,500 shares of its own $10 par common stock for $15 per share. Two months later, Kapper sold 270 shares of treasury stock for $12 per share. What would be the journal entry for the sale of the treasury stock assuming the Paid-in Capital from Treasury Stock Transactions has a credit balance of $300? O Cash Paid-in Capital from Treasury Stock Transactions Retained Earnings Treasury Stock - Common Cash Paid-in Capital from Treasury Stock Transactions Treasury Stock - Common O Cash Retained Earnings Treasury Stock - Common O Treasury Stock - Common Paid-in Capital from Treasury Stock Transactions Cash 3,240 300 510 3,240 810 3,240 810 4,050 4,050 4,050 4,050 810 3,240
Kapper Company purchased 2,500 shares of its own $10 par common stock for $15 per share. Two months later, Kapper sold 270 shares of treasury stock for $12 per share. What would be the journal entry for the sale of the treasury stock assuming the Paid-in Capital from Treasury Stock Transactions has a credit balance of $300? O Cash Paid-in Capital from Treasury Stock Transactions Retained Earnings Treasury Stock - Common Cash Paid-in Capital from Treasury Stock Transactions Treasury Stock - Common O Cash Retained Earnings Treasury Stock - Common O Treasury Stock - Common Paid-in Capital from Treasury Stock Transactions Cash 3,240 300 510 3,240 810 3,240 810 4,050 4,050 4,050 4,050 810 3,240
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
30. Help me selecting the right answer. Thank you
Transcribed Image Text:**Kapper Company Treasury Stock Transaction**
Kapper Company purchased 2,500 shares of its own $10 par common stock for $15 per share. Two months later, Kapper sold 270 shares of treasury stock for $12 per share. What would be the journal entry for the sale of the treasury stock assuming the Paid-in Capital from Treasury Stock Transactions has a credit balance of $300?
**Options:**
1. **Option 1:**
- **Cash**: $3,240
- **Paid-in Capital from Treasury Stock Transactions**: $300
- **Retained Earnings**: $510
- **Treasury Stock - Common**: $4,050
2. **Option 2:**
- **Cash**: $3,240
- **Paid-in Capital from Treasury Stock Transactions**: $810
- **Treasury Stock - Common**: $4,050
3. **Option 3:**
- **Cash**: $3,240
- **Retained Earnings**: $810
- **Treasury Stock - Common**: $4,050
4. **Option 4:**
- **Treasury Stock — Common**: $4,050
- **Paid-in Capital from Treasury Stock Transactions**: $810
- **Cash**: $3,240
**Graph/Diagram Explanation:**
There are no graphs or diagrams accompanying the text, only multiple-choice options showing potential journal entries for the described transaction.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education