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Accountıng Iı Deneme Sınavı Sorusu #1112771
Accountıng Iı Deneme Sınavı Sorusu #1112771
Which account should be credited while selling treasury share above cost?
Cash |
Paid-in Capital from Treasury Share |
Paid-in Capital Excess of Par |
Common share |
Treasury share |
Yanıt Açıklaması:
Treasury share may be resold above cost. In this case, there will be a difference between the cost and the sale price of the treasury share. If the sale price is higher than the cost of treasury share, this positive difference should be recorded in a new shareholders’ equity account named “Paid-in Capital from Treasury Share”. Paid-in Capital from Treasury Share is reported in the Paid-in Capital section of a corporation’s balance sheet. The correct answer is B.
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