The shareholders' equity section of Jason Company as of December 31, 2017, was as follows: Common stock $180,000 Additional paid-in capital (Common stock) 110,000 Retained earnings 160,000 Total shareholders' equity $450,000   . On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?     A credit to Retained Earnings for $90,000     A debit to Cash for $90,000     A debit to Treasury Stock for $90,000     A debit to Common Stock for $90,000     None of these choices is correct.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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QUESTION 20

  1. The shareholders' equity section of Jason Company as of December 31, 2017, was as follows:

    Common stock $180,000
    Additional paid-in capital (Common stock) 110,000
    Retained earnings 160,000
    Total shareholders' equity $450,000
      .

    On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?

       

    A credit to Retained Earnings for $90,000

       

    A debit to Cash for $90,000

       

    A debit to Treasury Stock for $90,000

       

    A debit to Common Stock for $90,000

       

    None of these choices is correct.

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