Question

On February 10, a corporation purchases 2,000 shares of its common stock at $50 per share. The entry to record the purchase would include a __________ to __________ for $100,0

Answer 1

Entry posted

Step-by-step explanation:

On February 10, a corporation purchases 2,000 shares of its common stock at $50 per share. The entry to record the purchase would include a Treasury Stock $100,000 to Cash $100,000. Treasury stocks will be debited because these are corporation's asset and cash will be credited becausecorporation is paying cash to purchase.

Working

Number of shares = 2000

Price per share = $50

Purchase = 2000 x $50

Purchase = $100,000