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Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock.  On Feb. 1 it had reacquired 500 shares of their own common stock at $32 per share.  Indicate the account on Mar. 1 that should be recorded in the Description column of the Journal item (1) as the account to debit for the $17,500 assuming that Sunshine Corp. reissued 500 shares of the treasury stock at $35 per share and is using the cost method.                                           JOURNAL                            page 32 date description p.ref. debit CREDIT Mar. 1 (1)   $17,500          (2)     ?        (2)     ?   Group of answer choices Treasury Stock Paid-In Capital from Sale of Treasury Stock Cash Common Stock

Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock.  On Feb. 1 it had reacquired 500 shares of their own common stock at $32 per share.  Indicate the account on Mar. 1 that should be recorded in the Description column of the Journal item (1) as the account to debit for the $17,500 assuming that Sunshine Corp. reissued 500 shares of the treasury stock at $35 per share and is using the cost method.                                           JOURNAL                            page 32 date description p.ref. debit CREDIT Mar. 1 (1)   $17,500          (2)     ?        (2)     ?   Group of answer choices Treasury Stock Paid-In Capital from Sale of Treasury Stock Cash Common Stock

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 3CE: Prepare general journal entries for the following transactions of GOTE Company: (a) Received...
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Sunshine Corp. was organized on Jan. 1 with authorization of 20,000 shares of $5 preferred stock, $100 par, and 200,000 shares of $25 par common stock.  On Feb. 1 it had reacquired 500 shares of their own common stock at $32 per share.  Indicate the account on Mar. 1 that should be recorded in the Description column of the Journal item (1) as the account to debit for the $17,500 assuming that Sunshine Corp. reissued 500 shares of the treasury stock at $35 per share and is using the cost method.

                                          JOURNAL                            page 32

date

description

p.ref.

debit

CREDIT

Mar. 1

(1)

 

$17,500

 

 

     (2)

 

 

?

 

     (2)

 

 

?

 

Group of answer choices
Treasury Stock
Paid-In Capital from Sale of Treasury Stock
Cash
Common Stock
 
 
 
 
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