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Purchase of Treasury Stock (Cost Method)
Recording the buyback of a company's own shares from the open market.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Treasury Stock | Contra-Equity (+) | 5,000.00 | - |
| Cash | Asset (-) | - | 5,000.00 |
💡 Accountant's Note
Treasury stock is not an asset; it is a contra-equity account. It reduces total shareholders' equity on the balance sheet.
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