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?