The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On May 13, the company repurchased 55 shares of its common stock in the open market at $25 per share. Which of the following would be included in the journal entry for May 13?
a. a debit to Cash for $1,375.
b. a credit to Common Stock for $1,375.
c. a debit to Common Stock for $1,375.
d. a debit to Treasury Stock for $1,375.

Question

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On May 13, the company repurchased 55 shares of its common stock in the open market at $25 per share. Which of the following would be included in the journal entry for May 13? 
a. a debit to Cash for $1,375.
b. a credit to Common Stock for $1,375.
c. a debit to Common Stock for $1,375.
d. a debit to Treasury Stock for $1,375.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On May 13, the company repurchased 55 shares of its common stock in the open market at $25 per share. Which of the following would be included in the journal entry for May 13? 
a. a debit to Cash for $1,375.
b. a credit to Common Stock for $1,375.
c. a debit to Common Stock for $1,375.
d. a debit to Treasury Stock for $1,375.

The Shareholders' Equity Section of Winters Company Contained the Following