Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Rick Co. purchases 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal
Rick Co. purchases 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this transaction?
Debit Treasury Stock Common $1,120,000 and credit Cash $1,120,000.
Debit Common Stock - $2 Par Value $2,240,000 and credit Cash $2,240,000.
Debit Cash $2,240,000, and credit Paid-In Capital in Excess of Par Common $2,240,000.
Debit Cash $2,240,000 and credit Treasury Stock Common $2,240,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started