On August 1, 2022, Amherst Company reacquired 4000 shares of its $ 15 par value common stock for $ 18 per share. Amherst uses the cost method to account for treasury stock. What journal entry should Amherst make to record the acquisition of treasury stock? 

a) Treasury Stock 60,000 Retained Earnings 12,000 Cash 72,000

 b) Treasury Stock 60,000 Additional Paid in Capital 12,000 Cash 72,000 

c) Retained Earnings 72,000 Cassh 72,000 

d) Treasury Stock 72,000 Cash 72,000

Answer rating: 100% (QA)

The correct journal entry to record the acquisition of treasury stock using the co... View the full answer