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Resale of Treasury Stock above Cost

Selling back company-owned shares to the market at a higher price than they were bought for.

Account NameTypeDebit ($)Credit ($)
CashAsset (+)6,000.00-
Treasury Stock (at cost)Contra-Equity (-)-5,000.00
Paid-in Capital from Treasury StockEquity (+)-1,000.00

💡 Accountant's Note

You do not record a 'Gain' on the income statement when selling treasury stock; the 'profit' goes directly to Equity (APIC).

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