Ask Experts Questions for FREE Help !
Ask
    cat55's Avatar
    cat55 Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Dec 10, 2008, 03:21 PM
    Treasury stock
    1. The purchase of Treasury stock is recorded at cost
    Debit Treasury Stock for $2,500
    Credit Cash for $2,500

    2. Debit Cash for 600
    Credit Treasury Stock for 500
    Credit Paid-in Capital - Share repurchase for 100

    3. Debit Cash for 360
    Debit Paid-in Capital - Share repurchase for 100
    Debit Reatained Earnings for 40
    Credit Treasury Stock for 500

    How did you get the 500 in #2?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Dec 10, 2008, 03:47 PM

    Because the Treasury stock was purchased at $25 per share so you only credit the account at $25 per share.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting for treasury stock used in stock dividend [ 1 Answers ]

How do I account for treasury stock use in a stock dividend for preferred stock? What would the journal entry by? I don't believe I should debit retained earnings for this transaction, but I'm not sure what account to debit. Please Help

Treasury Stock [ 1 Answers ]

When using the cost method to account for treasury stock, how do you account for the commissions and fees paid? Are they expensed or charged to treasury stock?

About Treasury Stock [ 1 Answers ]

What is true about treasury stock? 1.increases stockholder equity 2.is issued, but not outstanding 3.is more similar to preferred stock than to common stock 4.is issued by a firm to finanace expansion of operations

Treasury stock [ 1 Answers ]

The purchase of treasury stock for cash.. What effect does it have upon total assests, total stockholders equity, shares issued, and shares outstanding?

Treasury Stock [ 1 Answers ]

Hi I need some help on this question. Prepare in journal form the following entries. 1 Oct 1 Purchased 1,000 shares of it's own $2 par value common stock for $20 per share, the current market price 2. Sold 250 shares of treasury stock purchased on Oct 1 for $25 per share. 3. Sold 400 shares of...

View more questions Search