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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education