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General Accounting Discussions: Treasury stock accounting

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  1.  
    • CommentAuthoraccountant
    • CommentTimeMar 28th 2007
     
    Can somebody please help me with what will be the journal entries for Treasury stock in the company books.
    • CommentAuthorCounter
    • CommentTimeApr 1st 2007
     
    To record treasury stock under the cost method, it is easy...Put the cost in the account Treasury Stock and credit Cash. If the company purchases 100 shares of its own stock at $15 per share, debit Treasury Stock for $1500 and credit Cash for $1500.

    If the company later sells those shares for $1700, the entry will be to debit Cash for $1700, credit Treasury Stock for $1500, and credit Paid-in Capital from Treasury Stock for $200.
    • CommentAuthorAbusamak
    • CommentTimeApr 7th 2007
     
    its very easy,you will record treasury stock by cost method,and you must take the market price per share.
    if you want to purchase 1000 share with par value 1$ and market value of 5$ you shall record:
    Dr. treasury stock 5000
    Cr. cash 5000

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