When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for the excess of the cost the selling price but not to exceed the credit balance. True or False True False

When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for the excess of the cost the selling price but not to exceed the credit balance. True or False True False

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

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When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for the excess of the
cost the selling price but not to exceed the credit balance.
True or False
True
False

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Similar questions

What amount of the proceeds from the issuance of no-par, no-stated-value stock is recorded in the Capital Stock account?
Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a stock dividend resides with shareholders. C. It does not affect total equity but transfers amounts between equity components. D. It creates a cash reserve for shareholders.
When treasury stock is purchased for cash at more than its par value, what is the effect on total shareholders equity under each of the following methods?
hen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on Sale of Treasury Stock.b. Loss on Sale of Treasury Stock.c. Retained Earnings.d. Paid-in Capital in Excess of Par
Which of the following statements is false? a. the common stock account has a credit balance. b. the additional paid-in capital account has a credit balance. c. common stock may be issued for more than par value. d. the par value of common stock represents the stock's market value.
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?Required to answer. Single choice. a. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value b. Treasury stock for the purchase price c. 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 d. Paid-in capital in excess of par for the purchase price
Treasury stock should be reported as: a. A Reduction of stockholders equity in the balance sheet b. A Fixed asset in the balance sheet c. A long term investment in the balance sheet d. A Current asset in the balance sheet
If common stock is issued at a price above par value, the transaction would be recorded as a. debit Common Stock, debit Additional Paid-In Capital, and credit Cash b. debit Cash, debit Common Stock, and credit Additional Paid-In Capital c. debit Additional Paid-In Capital, credit Common Stock, and credit Cash. d. debit Cash, credit Common Stock, and credit Additional Paid-In Capital
. If common stock is issued for an amount greater than par value, the excess should be credited to Cash. Retained Earnings. Paid-in Capital in Excess of Par. Legal Capital
The journal entry to record the sale of treasury stock might include a.a credit to Treasury Stock. b.a credit to Paid-In Capital from Sale of Treasury Stock. c.a debit to Paid-In Capital from Sale of Treasury Stock. d.All of these choices are correct.
which of the following balances can the paid in capital treasury stock account not have zero balance debit balance credit balance both a and b
What does the additional paid-in capital account represent?a) The difference between the par and the stated value of common stock.b) The price changes that result for stock trading subsequent to its original issue.c) The market price of all common stock issued.d) The amount by which the original sales price of stock exceeds the par value.