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 accounts on Mar. 1 that should be recorded in the Description column of the Journal item (2) as the accounts to be credited and the amounts 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 Cash credited for 12,500, and Paid-In Capital from Sale of Treasury Stock credited for $5,000 Treasury Stock credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500 Cash credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500 Treasury Stock credited for $12,500 and Paid-In Capital from Sale of Treasury Stock credited for $5,000

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 accounts on Mar. 1 that should be recorded in the Description column of the Journal item (2) as the accounts to be credited and the amounts 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 Cash credited for 12,500, and Paid-In Capital from Sale of Treasury Stock credited for $5,000 Treasury Stock credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500 Cash credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500 Treasury Stock credited for $12,500 and Paid-In Capital from Sale of Treasury Stock credited for $5,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 4PA: Wingra Corporation was organized in March. It is authorized to issue 500,000 shares of $100 par...

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