Below Cost 8 of 9 Accounting for Treasury Stock Illustration: On Dec. 1, assume that Mead, Inc. sells its remaining 2,200 shares at $7 per share. 13-43 13-45 Dec. 1 Cash 15,400 Limited to Paid-in capital treasury stock 1,200 balance on Retained earnings 1,000 hand Treasury stock 17,600 SO 4 Explain the accounting for treasury stock. Preferred Stock Illustration: Stine Corporation issues 10,000 shares of $10 par value preferred stock for $12 cash per share. Journalize the issuance of the preferred stock. Cash Preferred stock (10,000 x $10) Paid-in capital in excess of par- Preferred stock 120,000 100,000 20,000 Preferred stock may have a par value or no-par value. SO 5 Differentiate preferred stock from common stock