Which of the Following Entries Would Be Recorded When a Company

Which of the following entries would be recorded when a company reissues 1,000 shares of treasury stock for $40 per share when they were repurchased at a cost of $44 per share and have a $1 par value? $\begin{array}{lr}\text { A. Cash } & 40,000 \\\text { Capital in excess of par value } & 4,000 \\\text { Treasury Stock } && 44,000\end{array}$

$\begin{array}{lrr}\text { B. Cash } & 40,000 & \\\text { Loss on sale of treasury stock } & 4,000 & \\\text { Treasury Stock } & & 44,000\end{array}$

$\begin{array}{lrr}\text { C. Cash } & 40,000 & \\\text { Capital in excess of par value } & 4,000 & \\\text { Common Stock } & & 44,000\end{array}$

$\begin{array}{lrr}\text { D. Cash } & 40,000 & \\\text { Common Stock } & &1,000 \\\text { Capital in excess of par value } && 39,000\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D

Correct Answer:

Verified

Show Answer