On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Tesla purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a credit to Treasury Stock for $90,000 debit to Treasury Stock for $90,000 O credit to a gain account for $112,500 O debit to a loss account for $112,500

On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, Tesla purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on March 1. The journal entry to record the purchase of the treasury shares on February 1 would include a credit to Treasury Stock for $90,000 debit to Treasury Stock for $90,000 O credit to a gain account for $112,500 O debit to a loss account for $112,500

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Description: On January 1, Tesla had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in aprior period at $20.00 per share. On February 1, Tesla purchased 3,750 shares of treasury stock for $24 per share and l

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 11EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share...

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