Comments on: Treasury Stock http://business-accounting-guides.com Small Business Accounting Thu, 19 Jan 2012 13:44:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kenneth Meunier http://business-accounting-guides.com/treasury-stock/comment-page-1/#comment-1323 Kenneth Meunier Wed, 07 Dec 2011 19:10:02 +0000 http://business-accounting-guides.com/?page_id=247#comment-1323 Hi MSID An asset will decrease to purchase the treasury stock, usually cash. The cost method and the par method affect the balance sheet differently for equity. One reduces stockholders equity with a temporary account, and the other reduces stockholders equity with permanent accounts. <a href="http://business-accounting-guides.com/treasury-stock-shares-cost-method/" rel="nofollow">Accounting for Treasury Stock - Cost Method</a> <a href="http://business-accounting-guides.com/treasury-stock-shares-par-value-method/" rel="nofollow">Accounting for Treasury Stock - Par Value Method</a> See example journal entries under cost method and par method. Kenneth Hi MSID

An asset will decrease to purchase the treasury stock, usually cash.

The cost method and the par method affect the balance sheet differently for equity. One reduces stockholders equity with a temporary account, and the other reduces stockholders equity with permanent accounts.

Accounting for Treasury Stock – Cost Method

Accounting for Treasury Stock – Par Value Method

See example journal entries under cost method and par method.

Kenneth

]]> By: msid http://business-accounting-guides.com/treasury-stock/comment-page-1/#comment-1321 msid Tue, 06 Dec 2011 19:59:59 +0000 http://business-accounting-guides.com/?page_id=247#comment-1321 what effect does treasury stock have on the Balance sheet if we don't add back the treasury stock..is there any other effect except ROE????????????????????? what effect does treasury stock have on the Balance sheet if we don’t add back the treasury stock..is there any other effect except ROE?????????????????????

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