Concept Introduction:
Treasury stock is the shares bought back by the company itself. A company may purchase its own shares and the shares bought back are called treasury stock. The
• For Purchase of treasury stock: Treasury stock account is debited and cash account is credited with the cost of treasury stock purchased.
• For Sale / Reissuance of treasury stock: Cash account is debited for the amount received on sale of treasury stock and the Treasury stock account is credited with the cost of treasury stock. For the difference in cost and sale value, Additional Paid in Capital and
To prepare: The Journal entries for purchase and reissuance of treasury stock

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Chapter 13 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
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