How do i calculate Paid in capital common and retained earnings when stock is sold below...

80.2K

Verified Solution

Question

Accounting

How do i calculate Paid in capital common and retained earningswhen stock is sold below value.
I know when i journal its
a debit to cash a debit to paid in capital treasurystock, a debit to retained earnings and a credit to treasury stockcommon. I just can't fiure out how to calculatehow much goes to retained earings and how much goes to paid incapital treasury stock. please help.

Answer & Explanation Solved by verified expert

4.1 Ratings (664 Votes)

lets take an example Treasury stock purchased 1000 shares at 20 sold 400 shares at 25 sold 600 shares at 15 Accounting titles Explanations Debit Credit See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

How do i calculate Paid in capital common and retained earningswhen stock is sold below value.I know when i journal itsa debit to cash a debit to paid in capital treasurystock, a debit to retained earnings and a credit to treasury stockcommon. I just can't fiure out how to calculatehow much goes to retained earings and how much goes to paid incapital treasury stock. please help.