Dallas Corporation purchased 300 shares of its own $10 par value common stock for $7,500. Later, these shares are sold for $8,000 cash. The journal entry to record the sale includes a:   A. $500 increase to Paid-in Capital from Treasury Stock   B. $500 increase to Gain on Sale of Treasury Stock   C. $4,800 increase to Paid-in Capital from Treasury Stock   D. $500 to Loss on Sale of Treasury Stock

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
ChapterD: Investments
Section: Chapter Questions
Problem D.4EX
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QUESTION 8

  1. Dallas Corporation purchased 300 shares of its own $10 par value common stock for $7,500. Later, these shares are sold for $8,000 cash. The journal entry to record the sale includes a:

      A.

    $500 increase to Paid-in Capital from Treasury Stock

      B.

    $500 increase to Gain on Sale of Treasury Stock

      C.

    $4,800 increase to Paid-in Capital from Treasury Stock

      D.

    $500 to Loss on Sale of Treasury Stock

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