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Accounting for Treasury stock

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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.

INSTRUCTIONS
(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
method.

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The expert examines accounting for Treasury Stock.

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

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