When treasury stock is sold

When treasury stock is sold - difference between the...

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When treasury stock is sold, the accounts used to record the sale depend on whether  the treasury stock was sold above or below the cost paid to purchase it. If the treasury  stock is sold above its cost, the sale increases (debits) cash for the proceeds received,  decreases (credits) treasury stock for the cost paid when the treasury stock was  repurchased, and increases (credits) additional paid-in-capital—treasury stock for the 
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Unformatted text preview: difference between the selling price and the repurchase price. If Soccer Trio Corporation subsequently sells 7,500 of the shares repurchased for $25 for $28, the entry to record the sale would be as shown: General Journal Date Account Title and Description Ref. Debit Credit 20X1 June 15 Cash (7,500 × $28) 210,000 Treasury Stock (7,500 × $25) 187,500 Additional paid-in-capital (treasury stock) 22,500 Record sale of 7,500 shares of treasury stock at $28...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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