ACC 423 Course Great Wisdom / tutorialrank.com ACC 423 Course Great Wisdom / tutorialrank.com | Page 13

B . appropriated retained earnings . C . contributions by stockholders . D . income retained by the corporation .
7 ) Wilson Corp . purchased its own par value stock on January 1 , 2007 for $ 20,000 and debited the treasury stock account for the purchase price . The stock was subsequently sold for $ 12,000 . The $ 8,000 difference between the cost and sales price should be recorded as a deduction from
A . retained earnings .
B . additional paid-in capital to the extent that previous net “ gains ” from sales of the same class of stock are included therein ; otherwise , from retained earnings .
C . net income .
D . additional paid-in capital without regard as to whether or NOT there have been previous net “ gains ” from sales of the same class of stock included therein .
8 ) УGains ” on sales of treasury stock ( using the cost method ) should be credited to
A . retained earnings . B . paid-in capital from treasury stock C . other income . D . capital stock .
9 ) When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock , what account ( s ) should be debited ?