Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. On Feb. 1 it had reacquired 500 shares of their own common stock at $32 per share. Indicate the account on Mar. 1 that should be recorded in the Description column of the Journal item (1) as the account to debit for the $17,500 assuming that Sunshine Corp. reissued 500 shares of the treasury stock at $35 per share and is using the cost method. JOURNAL page 32 date description p.ref. debit CREDIT Mar. 1 (1) $17,500 (2) ? (2) ? Group of answer choices Treasury Stock Paid-In Capital from Sale of Treasury Stock Cash Common Stock
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock. On Feb. 1 it had reacquired 500 shares of their own common stock at $32 per share. Indicate the account on Mar. 1 that should be recorded in the Description column of the Journal item (1) as the account to debit for the $17,500 assuming that Sunshine Corp. reissued 500 shares of the treasury stock at $35 per share and is using the cost method. JOURNAL page 32 date description p.ref. debit CREDIT Mar. 1 (1) $17,500 (2) ? (2) ? Group of answer choices Treasury Stock Paid-In Capital from Sale of Treasury Stock Cash Common Stock
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5
JOURNAL page 32
|
date |
description |
p.ref. |
debit |
CREDIT |
|
Mar. 1 |
(1) |
|
$17,500 |
|
|
|
(2) |
|
|
? |
|
|
(2) |
|
|
? |
Group of answer choices
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Cash
Common Stock
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