XHC had only two share transactions.Initially, XHC issued 1,000 common shares, at $15 per share.XHC later bought back 200 shares at $16 per share.Under the
Single-transaction method, what is the amount that should be recorded in the treasury stock account?
A)$3,600
B)$3,200
C)$2,000
D)$3,000

Question

Quizplus · Accepted Answer

Under the single-transaction method, the treasury stock account is credited with the cost of the shares bought back. XHC bought back 200 shares at $16 per share, so the treasury stock account should be recorded as 200 shares * $16 = $3,200.

XHC Had Only Two Share Transactions