When treasury stock is purchased for more par value of the stock and the cost method is used to account for treasury than the stock, what account(s) should be debited? * Treasury stock for the par value and paid-in O capital in excess of par for the excess of the purchase price over the par value. Paid-in capital in excess of par for the purchase price. Treasury stock for the purchase price. Treasury stock for the par value and O retained earnings for the excess of the purchase price over the par value.

When treasury stock is purchased for more par value of the stock and the cost method is used to account for treasury than the stock, what account(s) should be debited? * Treasury stock for the par value and paid-in O capital in excess of par for the excess of the purchase price over the par value. Paid-in capital in excess of par for the purchase price. Treasury stock for the purchase price. Treasury stock for the par value and O retained earnings for the excess of the purchase price over the par value.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 8MC: When treasury stock is purchased for cash at more than its par value, what is the effect on total...

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When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited?Required to answer. Single choice. a. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value b. Treasury stock for the purchase price c. Treasury stock for the par value and paid-in capital in excess of par for the excess of the purchase price over the par value d. Paid-in capital in excess of par for the purchase price
When treasury stock is sold below cost, the Paid-in Capital, Treasury Stock account is debited for the excess of the cost the selling price but not to exceed the credit balance. True or False True False
If stock is issued above par, what other equity account can be credited? Choices: common stock paid in capital cash retained earinings
hen treasury stock is sold for less than its cost, the entry should include a debit toa. Gain on Sale of Treasury Stock.b. Loss on Sale of Treasury Stock.c. Retained Earnings.d. Paid-in Capital in Excess of Par
Which of the following is an appropriate presentation of treasury stock? * O As a marketable security As a deduction at cost from total stockholders' equity As a deduction at cost from total contingent liabilities As a deduction at par from total stockholders' equity
Treasury stock is generally accounted for by the * cost method. O market value method. O par value method. O stated value method.
When common stock is issued at an amount greater than par value, the difference between the par value and the proceeds from the sale is recorded by crediting the common stock account O debiting an additional paid-in capital account O crediting the retained earnings account O crediting an additional paid-in capital account O
If common stock is issued at a price above par value, the transaction would be recorded as a. debit Common Stock, debit Additional Paid-In Capital, and credit Cash b. debit Cash, debit Common Stock, and credit Additional Paid-In Capital c. debit Additional Paid-In Capital, credit Common Stock, and credit Cash. d. debit Cash, credit Common Stock, and credit Additional Paid-In Capital
The journal entry to record the sale of treasury stock might include a.a credit to Treasury Stock. b.a credit to Paid-In Capital from Sale of Treasury Stock. c.a debit to Paid-In Capital from Sale of Treasury Stock. d.All of these choices are correct.
Calculate: -cost of common equity from retained earnings, using the CAPM method. - cost of new common stock based on the CAPM
When using discounted dividend method to estimate stock price, which of the following should be used as the discount rate? - required return of debt - risk free rate - required return of the equity - WACC - Bank deposit rate
The expected return on a stock is called the __ from the investor's perspective, and the __ from the company's perspective. A. required return; cost of equity B. required return; cost of capital C. excess return; cost of equity D. excess return; cost of capital