Question
The following information applies to Questions 6 and 7. In 2015, a company with a December 31 fiscal year end issued 100,000 shares of $1
The following information applies to Questions 6 and 7. In 2015, a company with a December 31 fiscal year end issued 100,000 shares of $1 par value common stock to investors for $10 per share. As of December 31, 2018, the company had 100,000 shares of $1 par value common stock issued and outstanding; the company had not repurchased any shares of common stock. On May 13, 2019, the company repurchased 26,000 shares of its common stock for $16 per share. On July 27, 2019, the company sold 7,000 treasury shares for $23 per share. On August 14, 2019, the company sold 9,000 treasury shares for $13 per share.
On August 14, 2019, the journal entry to record the sale of 9,000 treasury shares at $13 per share included which of the following:
A.
Debit to Retained Earnings for $27,000.
B.
Credit to Treasury Stock for $117,000.
C.
Credit to Treasury Stock for $144,000.
D.
Debit to Cash for $144,000.
E.
Credit to APIC from Treasury Stock Transactions for $22,000.
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