Monteverde Company repurchased 1,000 shares of its $5 par value common stock at $10 per share. The entry to record this transaction includes a:

Question

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When a company repurchases its own stock, it is recorded as Treasury Stock on the balance sheet. Therefore, the entry to record this transaction includes a debit to Treasury Stock. The cost of the repurchased shares is also credited to Cash, which means the company paid $10,000 for the shares. Therefore, the entry is a debit to Treasury Stock for $10,000. As a result, choice D is the correct answer.

Monteverde Company Repurchased 1,000 Shares of Its $5 Par Value