LESSON 12 2 Treasury Stock Transactions Buying treasury

LESSON 12 -2 Treasury Stock Transactions • Buying treasury stock • Selling treasury stock for original cost • Selling treasury stock for more or less than original cost CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Competency: Implementing Accounting for a Corporation 2 Accounting Adjustments and Valuation/Observation n Objectives 61 Identify the components of a corporate charter CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

3 BUYING TREASURY STOCK 1 2 3 4 page 350 5 1. Write the date. 2. Enter the account title. 3. Record the check number. 4. Write the debit amount. 5. Record the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

4 SELLING TREASURY STOCK FOR ORIGINAL COST 1 2 3 5 page 351 4 1. Write the date. 2. Enter the account title. 3. Record the receipt number. 4. Write the debit amount. 5. Record the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

5 SELLING TREASURY STOCK FOR MORE THAN ORIGINAL COST Number of Shares 200 Total received Original cost 200 × × × Value per Share $15. 00 12. 00 Amount received in excess of original cost = page 352 Value = $3, 000. 00 = 2, 400. 00 $ 600. 00 1 3 2 4 6 5 1. Calculate the amounts to be recorded. 2. Write the date. 4. Record the receipt number. 5. Write the debit amount. 3. Enter the account titles. 6. Record the credit amounts. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2

6 SELLING TREASURY STOCK FOR LESS THAN ORIGINAL COST Number of Shares 50 Original cost Total received 50 × × × Value per Share $12. 00 10. 00 Amount received less than original cost 3 = Value = $600. 00 = 500. 00 $100. 00 4 2 page 353 1 5 6 1. Calculate the amounts to be recorded. 2. Write the date. 4. Record the receipt number. 5. Write the debit amount. 3. Enter the account title. 6. Record the credit amount. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12 -2