Prior to September 30,a Company Has Never Had Any Treasury

Multiple Choice

Prior to September 30,a company has never had any treasury stock transactions.A company repurchased 1,000 shares of its $2 par common stock on September 30 for $20 per share.On October 2,it reissued 400 of these shares at $21 per share.On October 12,it reissued the remaining 600 shares at $19 per share.The journal entry to record the purchase of the shares on September 30 would be:

A) Debit Treasury Stock,$20,000; Credit Cash,$20,000.
B) Debit Common Stock,$20,000; Credit Cash,$20,000.
C) Debit Cash,$20,000; Credit Treasury Stock,$20,000.
D) Debit Cash,$20,000; Credit Common Stock,$2,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$18,000.
E) Debit Cash,$8,400,Credit Treasury Stock,$8,000,Credit Paid-in Capital in Excess of Par Value,Common Stock,$400.