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Recording Treasury Stock Under Cost Method

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The original sale of $50 par value common shares of Eddy Company was recorded as follows:

Cash 290,000
Common Stock 250,000
Paid in capital in excess of par 40,000

Record the treasury stock (given below) under the cost method

1) Bought 300 shares of common stock as treasury shares at $62
2) Sold 80 shares of treasury stock at $60
3) Sold treasury shares at $68

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1) Bought 300 shares of common stock as treasury shares at $62

Treasury Stock Dr (300X62) 18,600
Cash Cr 18,600

2) Sold 80 shares of treasury stock at $60

When the shares are sold, the credit to treasury stock will ...

Solution Summary

The solution explains how to record the treasury stock under cost method with worded explanation. 175 words.

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See Also This Related BrainMass Solution

Record Treasury Stock Transactions Under the Cost Method

Original sale of the $50 par value common shares of XYZ Company was recorded as follows:

Cash 290,000
Common stock 250,000
Paid in capital in excess of par value 40,000

a: Bought 300 shares of common stock as treasury shares at $62
b: Sold 80 shares of treasury stock at $60
c: Sold 40 treasury shares at $68.

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