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Unformatted text preview: c. CREDIT treasury stock 1,600 – always maintained at cost i. These shares will become part of outstanding shares now that they aren’t treasury shares anymore iii. Selling Treasury Stock Above Cost 1. On October 15, 2009, Saturn Company sold 400 shares of treasury stock for $4,000 a. $4,000 / 400 Shares = $10 per share b. DEBIT cash 4,000 c. CREDIT treasury stock for 3,200 (400 shares X $8) d. CREDIT PIC from sale of treasury stock i. We don’t credit a gain from sale iv. Selling Treasury Stock below Cost 1. On October 30, 2009, Saturn Company sold the remaining 400 shares of the treasury stock for $2,000. a. $2,000 / 400 shares = $5 per share b. DEBIT cash 2,000 c. CREDIT treasury stock for 3,200 (400 shares X $8) d. CREDIT PIC from sale of treasury stock 800 i. Take as much as you can from PIC, and the remaining balance from another account e. CREDIT Retained Earnings 400 i. Take the remaining balance from RE...
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This note was uploaded on 02/09/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.
- Fall '10
- Treasury Stock