Reference no: EM132490329

Question 1: On February 1, 2018, Cue Company acquired 1,300 shares of its $1 par value stock for $50 per share and held these shares in treasury. On April 10, 2019, Cue resold all the treasury shares for $53 per share. Which of the following entries would be recorded when Cue Company resells the shares of treasury stock?

Option 1: Cash                    68,900

            Treasury Stock        65,000

             Retained earnings      3,900

Option 2:  Cash                  68,900

            Common Stock         1, 300

       Additional paid-in capital     67 , 600

Option 3:  Cash                      68,900

            Treasury Stock           65,000

Gain on sale of treasury stock     3,900

Option 4:  Cash                      68,900

              Treasury Stock         65,000

          Additional paid-in capital     3,900