When treasury stock is sold at or below cost, the Paid-in-Capital

Question

When treasury stock is sold at or below cost, the Paid-in-Capital - Common Stock account will be debited or credited for the difference.

Quizplus · Accepted Answer

When treasury stock is sold at or below cost, the Paid-in-Capital - Treasury Stock account is debited for the cost of the stock, and any excess is credited to Paid-in-Capital - Excess of Cost over Par or Stated Value. The Paid-in-Capital - Common Stock account is not affected.