When treasury stock is purchased for $42 per share and subsequently sold for $47 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 2. When treasury stock is purchased for $42 per share and subsequently sold for $40 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 3. When treasury stock is purchased for $38 per share and subsequently sold for $47 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 4. When treasury stock is purchased for $38 per share and subsequently sold for $40 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded.

Question

Alani Aguilar

Business

16 July, 21:33

When treasury stock is purchased for $42 per share and subsequently sold for $47 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 2. When treasury stock is purchased for $42 per share and subsequently sold for $40 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 3. When treasury stock is purchased for $38 per share and subsequently sold for $47 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded. 4. When treasury stock is purchased for $38 per share and subsequently sold for $40 per share, treasury stock is credited for $ per share and Paid-in Capital from the Sale of Treasury Stock is for $ per share when the sale is recorded.

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Erin Mcintyre · Answer 1

1. When treasury stock is purchased for $42 per share and subsequently sold for $47 per share, treasury stock is credited for $42 per share and Paid-in Capital from the Sale of Treasury Stock is credited for $5 per share when the sale is recorded.

2. When treasury stock is purchased for $42 per share and subsequently sold for $40 per share, treasury stock is credited for $42 per share and Paid-in Capital from the Sale of Treasury Stock is debited for $2 per share when the sale is recorded.

3. When treasury stock is purchased for $38 per share and subsequently sold for $47 per share, treasury stock is credited for $38 per share and Paid-in Capital from the Sale of Treasury Stock is credited for $9 per share when the sale is recorded.

4. When treasury stock is purchased for $38 per share and subsequently sold for $40 per share, treasury stock is credited for $38 per share and Paid-in Capital from the Sale of Treasury Stock is credited for $2 per share when the sale is recorded.

Explanation:

The rule for recording the sales of repurchased stock is:

- Treasury stock will be credited at the amount of equals to the repurchased price per share.

- Paid-in Capital from the Sale of Treasury Stock is credited if the selling price is higher than the repurchased price or debited if the repurchased price is higher than the selling price. The amount of credit/debit will be equal to the absolute difference between selling and repurchasing price.

- In case the Paid-in Capital is debited to the balance of zero, any difference due to selling price is lower than repurchased price will be debited into Retained Earnings account.