The stockholders' equity section of Wild Weaver's balance sheet on January 1,2012,appeared as follows: On March 1,2012,Wild Weaver reacquired 800 shares of common stock at $10 per share.Wild Weaver sold 400 of the treasury shares on November 15 for $12 per share.The entry to record the sale on November 15 would show:

Question

The stockholders' equity section of Wild Weaver's balance sheet on January 1,2012,appeared as follows:  On March 1,2012,Wild Weaver reacquired 800 shares of common stock at $10 per share.Wild Weaver sold 400 of the treasury shares on November 15 for $12 per share.The entry to record the sale on November 15 would show:

Quizplus · Accepted Answer

The entry to record the sale of treasury stock would involve decreasing the Treasury Stock account by the cost of the shares sold, which is $4,000 (400 shares x $10 per share). Therefore, option D is the correct choice. Option A is incorrect because there is no gain on the sale of treasury stock since the sale price of $12 per share is higher than the cost of $10 per share. Option B is incorrect because common stock is not affected by the sale of treasury stock. Option C is incorrect because the company received cash of $4,800 from the sale of treasury stock, so there is no decrease in cash.

The Stockholders' Equity Section of Wild Weaver's Balance Sheet on January