On January 1, Vermont Corporation had 39,800 shares of $11 par value common stock issued and outstanding. All 39,800 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 950 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry for the purchase of the treasury shares on February 1 would include a a.debit to a loss account for $3,800 b.credit to Treasury Stock for $22,800
On January 1, Vermont Corporation had 39,800 shares of $11 par value common stock issued and outstanding. All 39,800 shares had been issued in a prior period at $20 per share. On February 1, Vermont purchased 950 shares of treasury stock for $24 per share and later sold the treasury shares for $18 per share on March 1. The journal entry for the purchase of the treasury shares on February 1 would include a a.debit to a loss account for $3,800 b.credit to Treasury Stock for $22,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, Vermont Corporation
had 39,800 shares of $11 par value
common stock issued and
outstanding. All 39,800 shares had
been issued in a prior period at $20
per share. On February 1, Vermont
purchased 950 shares of treasury stock
for $24 per share and later sold the
treasury shares for $18 per share on
March 1.
The journal entry for the purchase of
the treasury shares on February 1
would include a
a.debit to a loss account for $3,800
b.credit to Treasury Stock for $22,800
c.credit to a gain account for $3,800
d.debit to Treasury Stock for $22,800
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