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Sandstone Company has the following stockholders' equity section: Common Stock, 500,000 shares authorized: 400,000 shares issued and outstanding Additional Paid-in Capital Retained Earnings Total Stockholders'
Sandstone Company has the following stockholders' equity section: Common Stock, 500,000 shares authorized: 400,000 shares issued and outstanding Additional Paid-in Capital Retained Earnings Total Stockholders' Equity $700,000 4,900,000 7,300,000 $12,900,000 What is the journal entry to be made by Sandstone Company if the company purchases and retires 15,000 shares of its own common stock when the market price of the stock is $20 per share? Common Stock Retained Earnings O a. Cash 26,250 273,750 300,000 26,250 Common Stock Additional Paid-in Capital Cash 273,750 Ob. 300,000 C. Common Stock Retained Earnings Additional Paid-in Capital Cash 26,250 90,000 183,750 300,000 Common Stock Retained Earnings O d. Additional Paid-in Capital Cash 26,250 136,875 136,875 300,000 Common Stock Retained Earnings O e. Additional Paid-in Capital Cash 26,250 163,801 109,949 300,000
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