When a treasury stock are sold at a price less than its purchase price, the difference amount of loss is credited to paid in capital from treasury stock account, if there is any balance in paid in capital from treasury stock account. Entry would be recorded as follows:
Date | Account title | Debit | Credit |
Cash | xxx | ||
Paid in capital from treasury stock | xxx | ||
Treasury stock | xxx | ||
(To record the sale of treasury stock at loss) |
When a treasury stock are sold at a price less than its purchase price, the difference amount of loss would be recorded in both retained earnings account and paid in capital from treasury stock account, when the entire loss cannot be absorbed by paid in capital from treasury stock account alone, due to less balance in paid in capital from treasury stock account. First, total balance of paid in capital from treasury stock account will be debited, then remaining unobserved loss will be recorded as credit to retained earnings as follows:
Date | Account title | Debit | Credit |
Cash | xxx | ||
Retained earnings | xxx | ||
Paid in capital from treasury stock | xxx | ||
Treasury stock | xxx | ||
(To record the sale of treasury stock at loss) |
When a treasury stock are sold at a price less than its purchase price, the difference amount of loss is credited to retained earnings account, if there is $0 balance in paid in capital from treasury stock account. Entry would be recorded as follows:
Date | Account title | Debit | Credit |
Cash | xxx | ||
Retained earnings | xxx | ||
Treasury stock | xxx | ||
(To record the sale of treasury stock at loss) |
Explain the entry to sel Treasury Stock at a loss
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
Explain what the following terms mean: issued stock, unissued stock, authorized stock, treasury stock, and outstanding stock
Problem 19-8 Net loss; stock dividend; nonconvertible preferred stock; treasury shares shares sold; discontinued operations [LO19-5, 19-6, 19-7, 19-13] On December 31, 2017, Ainsworth, Inc.,.had 600 million shares of common stock outstanding. Twenty two million shares of 8%, $100 par value cumulative, nonconvertible preferred stock were sold on January 2, 2018, On April 30, 2018, Ainsworth purchased 50 million shares of its common stock as treasury stock. Twenty million treasury shares were sold on August 31, Ainsworth issued a 4%...
Options: 1. market; stop-loss; limit 2. sell; buy You sell 200 shares of a stock short for $46 per share. You want to limit your loss on this transaction to no more than $1,300. What order should you place? You should place order to 200 shares at s(Choose the correct answer from each drop-down menu and round to the nearest dollar.)
Treasury Stock Coastal Corporation issued 25,000 shares of $8 par value common stock at $20 per share and 6,000 shares of $53 par value, eight percent preferred stock at $61 per share. Later, the company purchased 3,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $29 per share. Prepare...
Treasury Stock Coastal Corporation issued 25,000 shares of $6 par value common stock at $18 per share and 6,000 shares of $50 par value, eight percent preferred stock at $79 per share. Later, the company purchased 3,000 shares of its own common stock at $21 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $27 per share. Prepare...
Treasury Stock Inland Corporation issued 30,000 shares of $5 par value common stock at $15 per share and 8,000 shares of $50 par value, eight percent preferred stock at $85 per share. Later, the company purchased 3,000 shares of its own common stock at $20 per share. X X 0x X X a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Inland sold 2,000 shares of the treasury stock...
Treasury Stock Pomona Corporation issued 60,000 shares of $3 par value common stock at $21 per share and 9,000 shares of $30 par value, ten percent preferred stock at $85 per share. Later, the company purchased 2,000 shares of its own common stock at $23 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Pomona sold 1,500 shares of the treasury stock at $30 per share. Prepare...
Treasury Stock Transactions Garrett Inc. had no treasury stock at the beginning of the year. During February, Garrett purchased 12,600 shares of treasury stock at $23 per share. In May, Garrett sold 4,500 of the treasury shares for $25 per share. In November, Garrett sold the remaining treasury shares for $18 per share. Required: Prepare journal entries for the February, May, and November treasury stock transactions. Feb. (Record purchase of treasury shares) May (Record reissue of treasury shares) Nov. (Record...