On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amhurst uses the cost method to account for treasury stock. What journal entry should Amhurst make to record the acquisition of treasury stock? Group of answer choices A debit to Treasury stock for $60,000 and a debit to Retained earnings for $12,000 and a credit to cash for $72,000 A debit to Treasury stock for $72,000 and a credit to Cash for $72,000 A debit to Treasury stock for $60,000 and a debit to APIC Treasury for $12,000 and a credit to Cash for $72,000 A debit to Retained earnings for $72,000 and a credit to Cash for $72,000
On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amhurst uses the cost method to account for treasury stock. What journal entry should Amhurst make to record the acquisition of treasury stock? Group of answer choices A debit to Treasury stock for $60,000 and a debit to Retained earnings for $12,000 and a credit to cash for $72,000 A debit to Treasury stock for $72,000 and a credit to Cash for $72,000 A debit to Treasury stock for $60,000 and a debit to APIC Treasury for $12,000 and a credit to Cash for $72,000 A debit to Retained earnings for $72,000 and a credit to Cash for $72,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On August 1, 2014, Amherst Company reacquired 4,000 shares of its $15 par value common stock for $18 per share. Amhurst uses the cost method to account for treasury stock . What journal entry should Amhurst make to record the acquisition of treasury stock?
Group of answer choices
A debit to Treasury stock for $60,000 and a debit to Retained earnings for $12,000 and a credit to cash for $72,000
A debit to Treasury stock for $72,000 and a credit to Cash for $72,000
A debit to Treasury stock for $60,000 and a debit to APIC Treasury for $12,000 and a credit to Cash for $72,000
A debit to Retained earnings for $72,000 and a credit to Cash for $72,000
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