On April 1, Kang Corporation purchased back 250 shares of $1 par value common stock for $20 per share. Two months later on June 1, Kang Corporation reissued 100 shares of the treasury stock for $25 per share. Which of the following journal entries is recorded for June 1? O DR: Cash $2.500; CR: Treasury Stock $2,000 and Additional Paid-in Capital from Treasury Stock $500 O DR: Cash $2.500; CR: Treasury Stock $2.500 O DR: Cash $2.500; CR: Common Stock $2.000 and Additional Paid-in Capital from Common Stock $500 O DR: Cash $6,250; CR: Treasury Stock $5,000 and Additional Paid-in Capital from Treasury Stock $1.250 O DR: Cash $2,500; CR: Common Stock $2.500

On April 1, Kang Corporation purchased back 250 shares of $1 par value common stock for $20 per share. Two months later on June 1, Kang Corporation reissued 100 shares of the treasury stock for $25 per share. Which of the following journal entries is recorded for June 1? O DR: Cash $2.500; CR: Treasury Stock $2,000 and Additional Paid-in Capital from Treasury Stock $500 O DR: Cash $2.500; CR: Treasury Stock $2.500 O DR: Cash $2.500; CR: Common Stock $2.000 and Additional Paid-in Capital from Common Stock $500 O DR: Cash $6,250; CR: Treasury Stock $5,000 and Additional Paid-in Capital from Treasury Stock $1.250 O DR: Cash $2,500; CR: Common Stock $2.500

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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