Apricot Inc

Multiple Choice

Apricot Inc. is reacquiring 25,000 common shares. The price is $4.25/share and the average price is $4.00. Assuming that there is a contributed surplus balance of $5,000, the entry to record the transaction would be

A) debit to Common shares, Contributed Surplus, and Retained Earnings and credit to Cash
B) debit to Common shares and Contributed Surplus and credit to Cash
C) debit to Common shares and Retained Earnings and credit to Cash
D) debit to Common shares and credit to Cash