Gertrudis Corporation has $10 par value Common Stock and has 1,000,000 shares authorized, 750,000 shares issued. The entry to record Gertrudis' purchase of 10,000 shares of common stock at $15 per share is a:

Question

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When a company purchases its own stock, it records the transaction by debiting the Treasury Stock account. Therefore, the entry to record Gertrudis' purchase of 10,000 shares of common stock at $15 per share would be a debit to Treasury Stock for $150,000. The other answer choices do not reflect the correct accounting treatment for the purchase of treasury stock.

Gertrudis Corporation Has $10 Par Value Common Stock and Has