Question 5

1. Table 10-6 Plating General acquired 3,000 of its own shares at $25 per share. The shares are to be held in Treasury. The par value of Plating General's common stock is $2.50 per share. Referring to Table 10-6, if Plating General were to resell all its treasury stock at $28 per share, what journal entry would Plating General make?

   		Cash 84,000 Additional Paid-in Capital 67,500 Treasury Stock 7,500 Gain on Sale of Treasury Stock 9,000
   		Cash 84,000 Treasury Stock 75,000 Gain on Sale of Treasury Stock 9,000
   		Cash 84,000 Additional Paid-in Capital 76,500 Treasury Stock 7,500
   		Cash 84,000 Additional Paid-in Capital 9,000 Treasury Stock 75,000
   		Cash 84,000 Common Stock 7,500 Treasury Stock 75,000 Gain on Sale of Treasury Stock 1,500