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FAR CPA Custom > Treasury Stock > Flashcards

Flashcards in Treasury Stock Deck (5)
1

Who OWNS T-Stock?

No one. A firm cannot OWN itself.

2

What are the two methods of acctg for T-Stock?

Cost method and par method.

3

How would a purchase of 10 T-Stock for $20 a share be recorded under the cost method?

dr. T-Stock (10*20) 200 (+)
cr. Cash 200(-)

4

What is the JE for a T-Stock reissue (greater than cost) under the cost method?

dr. Cash (+) (#purchased * purchase price)
cr. Contributed Capital (-) (New MP- Old MP)*#Purchased (-)
cr. T-Stock (# x Old MP) (-)

5

What is the JE for a T-Stock reissue (less than cost) under the cost method?

dr. Cash (+) (#purchased * purchase price)
dr. Retained Earnings (-) plug
cr. Contributed Capital (-) (New MP- Old MP)*#Purchased (-)
cr. T-Stock (# x Old MP) (-)