Mountain View Co.buys back 3,000 shares of its $10 par value common stock from investors at $126 per share.This stock repurchase would be recorded with a debit to:
A)Cash and a credit to Treasury Stock for $378,000.
B)Treasury Stock and a credit to Cash for $30,000.
C)Treasury Stock and a credit to Cash for $378,000.
D)Treasury Stock for $30,000,a debit to Additional Paid-in Capital for $348,000,and a credit to Cash for $378,000.

Question

Quizplus · Accepted Answer

The stock repurchase would be recorded with a debit to Treasury Stock and a credit to Cash for $378,000 (or 3,000 shares × cost of $126 per share).