ACC 304 All Assignments ACC 304 All Assignments | Page 46

38. When treasury stock is purchased for more than the par value of
the stock and the cost method is used to account for treasury stock,
what account(s) should be debited?
a. Treasury stock for the par value and paid-in capital in excess of par
for the excess of the purchase price over the par value.
b. Paid-in capital in excess of par for the purchase price.
c. Treasury stock for the purchase price.
d. Treasury stock for the par value and retained earnings for the
excess of the purchase price over the par value.
39. “Gains" on sales of treasury stock (using the cost method)
should be credited to
a. paid-in capital from treasury stock.