digi2003 on "Questions on Repurchasing Stock Previously Issued - Par Method"
When you are repurchasing stock previously issued under the par method, why and when do you make a debit to Retained Earnings? I know you:Dr. Treasury Stock (Shares purchased x par value) Cr. Cash...
View Articleaccountabergs on "Questions on Repurchasing Stock Previously Issued - Par...
Buy back above issue price:Dr. T-stock Dr. APIC- CS (issue price - par value) Dr. RE (cost - issue price) Cr.
View Articleaccountabergs on "Questions on Repurchasing Stock Previously Issued - Par...
Cr. Cash*Issue price is the original price issued to common stock, and cost is what you paid for the T-stockBuy Back Below issue price:Dr. T-stock Dr. APIC (issue price - par) Cr. Cash Cr. APIC- TS...
View Articledigi2003 on "Questions on Repurchasing Stock Previously Issued - Par Method"
So when the stock is repurchased above the issue price, you ALWAYS make a debit to R/E? The becker book said to do this only if there isn't enough APIC-treasury to debit against, but at this point,...
View Articleaccountabergs on "Questions on Repurchasing Stock Previously Issued - Par...
Yes, I believe your reasoning is correct. But at the same time, I can't 100% confirm that.
View ArticleLStevens225 on "Questions on Repurchasing Stock Previously Issued - Par Method"
Don't you only touch retained earnings if there isn't enough in apic to cover the original purchase par value back? If there enough in apic you don't touch retained earnings is what I thought.
View Articleaccountabergs on "Questions on Repurchasing Stock Previously Issued - Par...
@LStevens225- I think you are right (if you repurchase at the issue price or less?) And from digi's post before that, the reduction in APIC is from the APIC-CS, not APIC-TS. The APIC-TS only gets...
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