ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 348

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.