Llewelyn Company Purchased 1,000 Shares of Its Own $10 Par

Multiple Choice

Llewelyn Company purchased 1,000 shares of its own $10 par value common stock when the market price of the stock was $36 per share. How would this event affect the company's financial statements?

A) Increase the treasury stock account and increase the paid-in capital account in excess of par value − common account by $10,000.
B) Increase the treasury stock account and decrease the cash account by $36,000.
C) Increase the treasury stock account by $36,000, increase the common stock account by $10,000, and increase the paid-in capital account in excess of par value − common account by $26,000.
D) Increase the cash account by $36,000, decrease the treasury stock account by $10,000, and increase the paid-in capital account in excess of par − Common account by $26,000.