Question: Using the following information, the journal entry to record the March 5, 2019 transaction will be: January 1, 2019: Atlantic Corporation reacquires 2,000 shares of
Using the following information, the journal entry to record the March 5, 2019 transaction will be:
| January 1, 2019: | Atlantic Corporation reacquires 2,000 shares of its $15 par common stock for $66 per share. |
| March 5, 2019: | Atlantic reissues 1,000 of the above mentioned shares for $75 per share. |
Select one:
A.
| Cash | 75,000 |
|
|
| Treasury Stock |
| 66,000 |
|
| Gain on sale of treasury stock |
| 9,000 |
B.
| Cash | 75,000 |
|
|
| Treasury Stock |
| 66,000 |
|
| Paid in capital, treasury stock |
| 9,000 |
C.
| Cash | 75,000 |
|
|
| Treasury Stock |
| 66,000 |
|
| Investment income on treasury stock |
| 9,000 |
D.
| Cash | 75,000 |
|
|
| Treasury Stock |
| 15,000 |
|
| Paid in capital, treasury stock |
| 60,000 |
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