On November 12, a company repurchases 500 shares of its own common stock at $12 per share. Originally, the selling price of the shares was $10. The entry to recognize the purchase of treasury shares is:

debit to cash and credit to threasury stock for $1,000,
debit to threasury stock and credit to cash for $6,000,
debit to threasury stock and credit to cash for $5,000
debit to cash and credit to theasury stock for $6,000

Answer rating: 100% (QA)

The correct journal entry to recognize the purchase of treasury shares in this scenario is Debit Tre... View the full answer