ACC 304 All Assignments ACC 304 All Assignments | Page 33

5. True no-par stock should be carried in the accounts at issue price
without any additional paid-in capital reported.
6. Companies allocate the proceeds received from a lump-sum sale
of securities based on the securities’ par values.
7. Companies should record stock issued for services or noncash
property at either the fair value of the stock issued or the fair value of
the consideration received.
8. Treasury stock is a company’s own stock that has been
reacquired and retired
9. The cost method records all transactions in treasury shares at
their cost and reports the treasury stock as a deduction from capital
stock.
10. When a corporation sells treasury stock below its cost, it usually
debits the difference between cost and selling price to Paid-in Capital
from Treasury Stock.