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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