A corporation purchased 35 shares of treasury stock for $40.The entry to record the transaction would include a:

Question

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When a corporation purchases its own stock, it is recorded as a debit to Treasury Stock and a credit to Cash. In this case, the corporation purchased 35 shares of treasury stock for $40, so the entry would be a debit to Treasury Stock for $1400 ($40 x 35) and a credit to Cash for $1400.

A Corporation Purchased 35 Shares of Treasury Stock for $40