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Five Years Ago, Dunn Trading Co

Question 76

Multiple Choice

Five years ago, Dunn Trading Co.issued 2,500 ordinary shares.The shares have a ₤2 par value and sold at that time for ₤12 per share.On January 1, 2012, Dunn Trading Co.Purchased 1,000 of these shares for ₤24 per share.On September 30, 2012, Dunn reissued 500 of the shares for ₤28 per share.The journal entry to record the reissuance will include


A) A debit to Treasury Shares ₤12,000.
B) A credit to Share Premium-Treasury ₤2,000.
C) A credit to Treasury Shares ₤14,000.
D) A credit to cash ₤14,000.

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