Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price of the stock was $34 per share. Which of the following journal entries would be used to record the purchase of treasury stock? Multiple ChoiceAccount TitleDebitCreditTreasury stock28,800Paid-in capital in excess of par28,800CommonAccount TitleDebitCreditTreasury stock122,400Cash122,400Account TitleDebitCreditTreasury stock122,400Common stock28,800Paid-in capital in excess of parCommon93,600Account TitleDebitCreditCash122,400Treasury stockPaid-in capital in excess of par28,800Common93,600

To create a journal entry, you enter transaction details into ones company's books. Your journal…

Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price of the stock was $34 per share. Which of the following journal entries would be used to record the purchase of treasury stock?

Llewelyn Company purchased 3,600 shares of its own $8 par value common stock when the market price of the stock was $34 per share. Which of the following journal entries would be used to record the purchase of treasury stock?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 1Q: Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt,...

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Question

100%

Multiple Choice
Account Title
Debit
Credit
Treasury stock
28,800
Paid-in capital in excess of par
28,800
Common
Account Title
Debit
Credit
Treasury stock
122,400
Cash
122,400
Account Title
Debit
Credit
Treasury stock
122,400
Common stock
28,800
Paid-in capital in excess of par
Common
93,600
Account Title
Debit
Credit
Cash
122,400
Treasury stock
Paid-in capital in excess of par
28,800
Common
93,600

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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