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 reissuance of the shares on October 12 would be:

A) Debit Cash,$11,400; Credit Treasury Stock,$800; Credit Paid-in Capital,Treasury Stock,$10,600.
B) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$600; Credit Treasury Stock,$12,000.
C) Debit Cash,$11,400; Debit Paid-in Capital in Excess of Par Value,Common Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000.
D) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$600; Credit Treasury Stock,$12,000.
E) Debit Cash,$11,400; Debit Paid-in Capital,Treasury Stock,$400; Debit Retained Earnings,$200; Credit Treasury Stock,$12,000.