In some cases, particularly when the reissue of treasury stock results from the exercise of employee stock options, the amount paid by the firm to reacquire the treasury shares exceeds the subsequent reissue price. If the firm uses the cost method, it debits the balance to
a. Additional Paid-In Capital account so long as that account has a sufficiently large credit balance. To the extent the required debit exceeds the credit balance in the Additional Paid-In Capital account, the firm reduces that account to zero and debits the excess to Retained Earnings.
b. Additional Paid-In Capital.
c. Retained Earnings.
d. Net Income.
e. Accumulated Other Comprehensive Income.
A
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Office Supplies, Inc. uses a perpetual inventory system. Journalize the following sales transactions for this company. Explanations are not required
July 3 Sold $15,400 of merchandise on account, credit terms are 2/10, n/30 Cost of goods is $9,300. July 7 Received a $750 sales return from the customer. Cost of the goods is $435. July 12 Office Supplies receives payment for the customer for the amount due from the July 3 sale. What will be an ideal response
The percent-of-sales method calculates bad debts expense based on a percentage of net cash sales
Indicate whether the statement is true or false