Question $2$

In June $2013,$ a company repurchased $10,000$ shares of stock at a price of $$10$ per share. In July $2013,$ the company sold $5,000$ of those treasury shares for $$8$ per share. What is the correct journal entry for the July $2013$ sale of the treasury shares?

Dr$.$ Cash $40,000$

$$Cr$.$ APIC $40,000$

Dr$.$ Cash $40,000$

Dr$.$ APIC $10,000$

$$Cr$.$ Treasury Stock $50,000$

Dr$.$ Cash $40,000$

Dr$.$ Loss on sale $10,000$

$$Cr$.$ Treasury Stock $50,000$

Dr$.$ Cash $40,000$

$$Cr$.$ Treasury Stock $40,000$

Dr$.$ Cash $50,000$

$$Cr$.$ Treasury Stock $50,000$