A company buys treasury stock for $10 per share. The company later sells the treasury stock...
A company buys treasury stock for $10 per share. The company later sells the treasury stock for $11 per share. What is the difference between the resale price and the cost of the treasury stock called?
A. Paid - in Capital in Excess of Par
B. Gain on Sale of Treasury Stock
C. Loss on Sale of Treasury Stock
D. Paid - in Capital from Treasury Stock Transactions
Homework Answers
Answer: D. Paid - in Capital from Treasury Stock Transactions
The journal entry would be as follows:
Treasury Stock a/c Dr. 10
To Cash 10
(Treasury stock purchased)
Cash a/c Dr. 11
To Treasury Stock 10
To Paid - in Capital from Treasury Stock Transactions 1
(Treasury stock sold)
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