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Question
Duke Corporation reports the following components of stockholders equity on December 31, 2013:
| Common stock$25 par value, 100,000 shares authorized, 45,000 shares issued and outstanding | $1,125,000 |
| Paid-in capital in excess of par value, common stock | 60,000 |
| Retained earnings | 460,000 |
| Total stockholders equity | $1,645,000 |
In 2014, the following transactions affected its stockholders equity accounts.
| Jan. 1 | Purchased 4,500 shares of its own stock at $27 cash per share. | |
| Jan. 5 | Directors declared a $3 per share cash dividend payable on February 28 to the February 5 stockholders of record. |
|
| Feb. 28 | Paid the dividend declared on January 5. | |
Mar. 3 |
Sold 1,000 shares of treasury stock for $28 per share. |
|
What is the journal entry required for the March 3 transaction?
A.
| Cash | 28,000 | |
| Treasury Stock | 25,000 | |
| Paid-In Capital, Treasury Stock | 3,000 |
B.
| Cash | 28,000 | |
| Treasury Stock | 28,000 |
C.
| Cash | 28,000 | |
| Treasury Stock | 27,000 | |
| Paid-In Capital, Treasury Stock | 1,000 |
D.
| Cash | 28,000 | |
| Common Stock | 25,000 | |
| PaidIn Capital, Common Stock | 3,000 |
E.
| Cash | 28,000 | |
| Retained Earnings | 28,000 |
Answer
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