Talboe Co. issued 90,000 shares of $9 par common stock for $1,500,000. A year later Talboe acquired 12,000 shares of its own common stock at $12 per share. Three months later Talboe sold 5,000 of these shares at $20 per share. Talboe Co. uses the cost method to record treasury stock transactions. Select which is the correct journal entry when Talboe Co. sold the 5,000 shares of stock. a. Debit Cash $100,000; Credit Treasury Stock $60,000, Credit Paid in Capital Excess - Treasury Stock $40,000
b. Debit Cash $100,000; Credit Treasury Stock $100,000 Debit
c. Cash $100,000; Credit Treasury Stock $40,000, Credit Paid in Capital Excess - Treasury Stock $60,000
d. Debit Treasury Stock $60,000, Debit Paid in Capital Excess - Treasury Stock $40,000; Credit Cash $100,00