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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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? * 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. Paid-in capital in excess of par for the purchase price. Treasury stock for the purchase price. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value. When a share split occurs, the aggregate par value of issued shares will change. * True False
Transcribed Image Text: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? * 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. Paid-in capital in excess of par for the purchase price. Treasury stock for the purchase price. Treasury stock for the par value and retained earnings for the excess of the purchase price over the par value. When a share split occurs, the aggregate par value of issued shares will change. * True False
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