Five years ago, Dunn Trading Co. issued 2,500 ordinary shares. The shares have a 2 parvalue and

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Question:

Five years ago, Dunn Trading Co. issued 2,500 ordinary shares. The shares have a ₤2 parvalue and sold at that time for ₤12 per share. On January 1, 2015, Dunn Trading Co.Purchased 1,000 of these shares for ₤24 per share. On September 30, 2015, Dunn reissued500 of the shares for ₤28 per share. The journal entry to record the reissuance will includea.

a. A debit to Treasury Shares ₤12,000.

b. A credit to Share Premium—Treasury ₤2,000.

c. A credit to Treasury Shares ₤14,000.

d. A credit to cash ₤14,000