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aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 30 Jun 2010 at 01:39 \| IP Logged

can someone suggest a way to remember cost and par methods for treasury stock??

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

nipson
Contributor

Joined: 01 Jun 2010
Online Status: Offline
Posts: 63

Posted: 30 Jun 2010 at 02:02 \| IP Logged

Most basic thing to remember is that the same amount is
debited(when purchased) and credited(when reissued).

Cost method-recorded at the amount you paid.

Par method - recorded at the par value (original issue
price), regardless of what you paid.

Purchase:

DR T-stock COST
    CR Cash        COST

Reissue:
DR Cash   Mkt value
   CR T-stock       COST
DR/CR APIC depending on if its sold for more or less
than COST

Purchase:

DR T-stock PAR
DR/CR   APIC
   CR   Cash    PAR +/- APIC

Reissue:

DR    Cash
DR/CR APIC
   CR    T-stock &nb sp; PAR

aimtobeacpa
Major Contributor

Joined: 10 Dec 2009
Online Status: Offline
Posts: 657

Posted: 30 Jun 2010 at 02:19 \| IP Logged

thanks a lot:)

__________________
BEC-74,82(lost credit),78
FAR-67,80
AUD-75
REG-68,72,79

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