Jacobs Corporation has the following shareholders' equity on December 31, 2014:
Shareholders' equity
-If 10,000 common shares were reacquired for $24 per share, the journal entry to record the transaction would
A) credit Contributed Surplus-Reacquisition of Shares for $40,000.
B) credit Retained Earnings for $40,000.
C) credit Common Shares for $240,000.
D) debit Common Shares for $200,000.

Question

Jacobs Corporation has the following shareholders' equity on December 31, 2014:
Shareholders' equity 
-If 10,000 common shares were reacquired for $24 per share, the journal entry to record the transaction would
A) credit Contributed Surplus-Reacquisition of Shares for $40,000. 
B) credit Retained Earnings for $40,000. 
C) credit Common Shares for $240,000. 
D) debit Common Shares for $200,000.

Quizplus · Accepted Answer

The Answer of Jacobs Corporation has the following shareholders' equity on December 31, 2014:
Shareholders' equity 
-If 10,000 common shares were reacquired for $24 per share, the journal entry to record the transaction would
A) credit Contributed Surplus-Reacquisition of Shares for $40,000. 
B) credit Retained Earnings for $40,000. 
C) credit Common Shares for $240,000. 
D) debit Common Shares for $200,000.

Jacobs Corporation Has the Following Shareholders' Equity on December 31