Reference no: EM131939218

Question - On August 15, 2016, Roberts Corporation purchased 20,000 of its common shares for $27 per share for its treasury. On November 1, 2016, the company sold 5,000 of its treasury shares for $30 per share. On December 15, 2016, the company reissued 7,500 of the remaining treasury shares for $0 per share. What is the journal entry to record the December 15 transaction?

a. Debit to Cash for $150,000, a debit to Paid-in capital, Treasury stock for $15,000, a debit to Retained Earnings for $37,500, and a credit to Treasury for $202,500.

b. Debit to Cash for $150,000, a debit to Retained Earnings for $52,500, and a credit to Treasury stock for $202,500.

c. Debit to Cash for $150,000, a debit to Paid in Capital, Treasury Stock for $52,500, and a credit to Treasury Stock for $202,500.

d. Debit to Cash for $150,0000 and a credit to Treasury Stock for $150,000.