Question

Our company originally issued 1,000 shares of $1 par value common stock for $9 per share. We repurchased 200 shares of the stock as treasury stock for $10 per share. On September 5, we sold 100 shares of treasury stock for $12 per share. What account(s) and amount(s) would we debit when we record the journal entry for the September 5 transaction?

Group of answer choices

A. cash, $1,200

B. treasury stock, $1,000; and paid in capital from treasury stock, $200

C. treasury stock, $1,000

D. cash, $1,000

Answer 1

Answer
Option A is correct : cash, $1,200
Explanation
Cash account will be debited for amount received
Cash, $1200 (100*12)
1) Journal entry :
Date	accounts & explanation	debit	credit
05-Sep	Cash	$     1,200
	Paid in capital from sale of treasury stock		$        200
	Treasury stock		$     1,000
so answer is A) is Correct cash, a/c Debit $1,200