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On January1,20xx sunshine corporation had 10,000 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, 200xx sunshine purchased 2,000 shares of treasury stock for $23 per share and later sold the treasury shared for $21 per share on March 1, 20xx

The journal entry to record the purchase of the treasury shares on February 1, 20xx would include a
a. credit to Treasury Stock for $46,000
b. debit to Treasury Stock for $46,000
c. debit to a loss account for $6,000
d. credit to a gain account for $6,000

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This solution is comprised of answer to prepare the journal entry to record the purchase of the treasury shares on February 1, 20xx.

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On January1, 20xx sunshine corporation had 10,000 shares of $10 par value common stock issued and outstanding.

All 40,000 shares had been issued in a prior ...

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