Long Co.issued 100,000 shares of $10 par ordinary shares for $1,200,000.Long acquired 8,000 shares of its own shares at $15 per share.Three months later Long sold 4,000 of these shares at $19 per share.If the cost method is used to record treasury shares transactions, to record the sale of the 4,000 treasury shares, Long should credit

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Under the cost method, treasury shares are recorded at cost and any gains or losses on their subsequent sale are recorded in Share Premium-Treasury Stock.

The cost of the 8,000 treasury shares is $15 per share, which amounts to a total cost of $120,000 (8,000 x $15).

When Long sells 4,000 of these shares at $19 per share, the total proceeds are $76,000 (4,000 x $19). The gain on this sale is calculated as follows:

Proceeds from sale: $76,000 
Cost of shares sold: $60,000 (4,000 x $15) 
Gain on sale: $16,000

Therefore, to record the sale of the 4,000 treasury shares, Long should credit Treasury Shares for $60,000 (the cost of the shares sold) and Share Premium-Treasury Stock for $16,000 (the gain on the sale).

The other options are incorrect because they don't account for the gain on the sale of the treasury shares. Option A only records the proceeds from the sale, while Option B records both the cost and proceeds but doesn't separate out the gain. Option D records the gain in Share Premium-Ordinary, which is incorrect because the gain relates specifically to the sale of treasury shares, not ordinary shares.

Long CoIssued 100,000 Shares of $10 Par Ordinary Shares for $1,200,000