Asked by
Pablito Fechino
on Nov 18, 2024
Verified
The excess of sales price of treasury stock over its cost should be credited to
A) Treasury Stock Receivable
B) Premium on Capital Stock
C) Paid-In Capital from Sale of Treasury Stock
D) Income from Sale of Treasury Stock
Treasury Stock
Stock that has been repurchased by the issuing company, reducing the amount of outstanding stock on the open market.
Sales Price
The amount of money charged for a product or service, or the sum received upon the sale of a product or service.
Paid-In Capital
Funds received from investors in exchange for shares of the company's stock, representing equity financing as opposed to debt.
- Understand the consequences of treasury stock dealings on stockholders' equity.
Verified Answer
EM
Learning Objectives
- Understand the consequences of treasury stock dealings on stockholders' equity.