The shareholders' equity section of Jason Company as of December 31, 2010 follows:
On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15?
a. a credit to Retained Earnings for $90,000.
b. a debit to Cash for $90,000.
c. a debit to Treasury Stock for $90,000.
d. a debit to Common Stock for $90,000.

Question

The shareholders' equity section of Jason Company as of December 31, 2010 follows:
  On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15? 
a. a credit to Retained Earnings for $90,000.
b. a debit to Cash for $90,000.
c. a debit to Treasury Stock for $90,000.
d. a debit to Common Stock for $90,000.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Jason Company as of December 31, 2010 follows:
  On January 15, the company repurchased 1,500 shares of its own common stock at $60 to hold as treasury stock. Which of the following would be included in the journal entry recorded on January 15? 
a. a credit to Retained Earnings for $90,000.
b. a debit to Cash for $90,000.
c. a debit to Treasury Stock for $90,000.
d. a debit to Common Stock for $90,000.

The Shareholders' Equity Section of Jason Company as of December