Richard Company Paid £21,000 to Buy 4,000 Shares of Its

Multiple Choice

Richard Company paid £21,000 to buy 4,000 shares of its £6 par value ordinary shares for distribution in an executive compensation plan.The stock was originally sold for £25,000.The entry to record purchase includes a

A) debit to Treasury Shares for £21,000.
B) credit to Retained Earnings for £1,000.
C) debit to Share Premium-Ordinary for £4,000.
D) credit to Share Capita-Ordinary for £24,000.