How do you journalize treasury stock transactions?© BrainMass Inc. brainmass.com June 19, 2018, 6:23 pm ad1c9bdddf
There could be various situations in relation to treasury stock transactions. We will see them one by one.
1. Purchase of treasury stock - Purchased 100 shares at $20
Treasury Stock Dr... 2,000
Cash Cr....................... 2,000
2. Sold Treasury stock - sold 50 at $22
Treasury Stock Cr....1,000 ( the credit amount is always at the purchase price- 50X20)
Additional paid in capital from treasury stock Cr..100 ( the difference goes here)
3. Sold ...
The solution explains how to record treasury stock transactions.