When treasury stock is purchased for more than the par value of the stock and the cost
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Question:
When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?
Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value.
Treasury stock for the purchase price.
Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value.
Paid-in capital in excess of par for the purchase price.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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