Explore BrainMass

Explore BrainMass

    Accounting for Treasury stock

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    In 2003, Nichols Co. issued 200,000 of its 500,000 authorized shares of $10 par value common stock at $35 per share. In January, 2004, Nichols repurchased 10,000 shares at $30 per share. Assume these are the only stock transactions the company has ever had.

    (a) What are the two methods of accounting for treasury stock?
    (b) Prepare the journal entry to record the purchase of treasury
    stock by the cost method.
    (c) 3,000 shares of treasury stock are reissued at $33 per share.
    Prepare the journal entry to record the reissuance by the cost

    © BrainMass Inc. brainmass.com June 3, 2020, 9:50 pm ad1c9bdddf

    Solution Preview

    (a) One way of accounting for treasury stock is with the cost method. Another common way for accounting for ...

    Solution Summary

    The expert examines accounting for Treasury Stock.