Unformatted text preview: contra stockholders’ equity account and cash is an asset so this transacTon would result in the following: A. Has no eFect on net income B. Decreases total assets C. Has no eFect on total paid-in capital D. Decreases total stockholders’ equity. When treasury stock is re-sold at a price above original cost, cash is then debited for the amount of the proceeds ($15,000), ±reasury stock is credited at cost ($12,000), and the excess ($3,000) is credited to Paid-in Capital from treasury stock. Cash is an asset, and the other two accounts are part of stockholders’ equity. ±herefore, this transacTon: A. Has no eFect on net income B. Increases total assets C. Increases total paid-in capital D. Increases total stockholders’ equity....
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- Spring '12
- Accounting, Generally Accepted Accounting Principles, Total paid-in capital