Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Use this information for #24 and #25. The following transactions occurred during the year April 1- Purchased 2,000 shares of its own $10 par value,
Use this information for #24 and #25. The following transactions occurred during the year April 1- Purchased 2,000 shares of its own $10 par value, common stock for $20 per share. This is the first time the corporation ever purchased their own stock. May 3 -Sold 400 of the shares purchased on April 1 for $25 per share 24. The entry to record the April 1st transaction is: a. DR Treasury Stock $20,000 CR Cash $20,000 b. DR Treasury Stock $20,000 CR Paid in Cap Treasury Stock Transact $20,000 CR Cash $40,000 c. DR Treasury Stock $40,000 CR Cash $40,000 d. DR Common Stock $40,000 CR Cash $40,000 25. The entry to record the May 3rd transaction is: a. DR Cash $10,000 CR Treasury Stock $10,000 b. DR Retained earnings $10,000 CR Cash $10,000 c. DR Cash $ 10,000 CR Treasury Stock $10,000 d. DR Cash $10,000 CR Treasury Stock $8,000 CR Paid in Capital Treasury Stock Transactions $2,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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