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 32datedescriptionp.ref.debitCREDITMar. 1(1) $17,500 (2) ? (2) ? Group of answer choicesCash credited for 12,500, and Paid-In Capital from Sale of Treasury Stock credited for $5,000Treasury Stock credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500Cash credited for $16,000 and Paid-In Capital from Sale of Treasury Stock credited for $1,500Treasury Stock credited for $12,500 and Paid-In Capital from Sale of Treasury Stock credited for $5,000

Shares refer to the market security that the company issue to raise funds from the market by…

Answered: Sunshine Corp. was organized on Jan. 1…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 5MC: Kent Corporation was organized on January 1, 2014. On that date, it issued 200,000 shares of 10 par...

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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 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

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