Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
When Oslo Ltd. was organized last year, they issued 100,000 no par value common shares for $ 1,200,000. Earlier this year, the corporation purchased 4,000 of these shares at $ 15 per share, to be held in the treasury, and three months later, sold 2,000 treasury shares at $ 19 per share. There were no other treasury share transactions.
-If, instead of holding the 4,000 shares as treasury shares, Oslo had decided to cancel them, Oslo should debit

A) Common Shares for $ 48,000 and Retained Earnings for $ 12,000.
B) Contributed Surplus for $ 48,000 and Retained Earnings for $ 12,000.
C) Contributed Surplus for $ 60,000.
D) Common Shares for $ 60,000.