Treasury stock is recorded at its cost, which is the market value of the stock on the date it is purchased. Treasury stock is is a contra- stockholders equity account. This means it carries a debit balance and is a reduction to total shareholders equity. Example: Dunder Mifflin repurchases 100,000 shares at $25. Record the JE for this transaction. Resale of Treasury Stock Reselling treasury grows the companys assets and SE the same was as an initial issuance does. Important note- a company never recognizes a gain or loss on the sale of its own stock, even if the stock is re-sold at an amount higher or lower than it was initially repurchased at. Rather, any additional funds will go into APIC. Example: Assume DM reissues 10,000 of its treasury shares at $30. Record the JE