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Canada (508,682)
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ACC 333 (82)
Lecture

treasure stock par value.docx

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Department
Accounting
Course
ACC 333
Professor
Douglas King
Semester
Winter

Description
Treasury StockCost Method Cost method is one of the two methods of accounting for treasury stock the stock which has been bought back by the issuing company itself The other method is called the par value method Under the cost method the purchase of treasury stock is recorded by debiting treasury stock account by the actual cost of purchase The cost method ignores the par value of the shares and the amount received from investors when the shares were originally issued When treasury shares are later reissued the treasury stock account is credited for the cost at which they were purchased cash account is debited for the amount actually received and if the amount received on reissuance of treasury stock ismore than the cost of treasury stock the difference between the amount received and the cost of the treasury stock is credited to additional paidin
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