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Treasury stock is a type of stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.
Treasury stock is a type of stock that has been reacquired by the issuing corporation. While held by the issuer, the stock is considered issued but not outstanding, and is not considered in measuring the value of outstanding common shares.
The company can record the sale of treasury stock with the journal entry of debiting the cash account and crediting the treasury stock account when the sale price equals its cost. Opposite to the purchase, the sale of treasury stock increases both total assets and total equity.
Treasury stock is considered a contra-equity account. Contra-equity accounts have a debit balance and reduce the total amount of equity owned i.e. an increase in treasury stock causes the shareholders equity value to decline.
Treasury stock is usually a corporations previously issued shares of common stock that have been purchased from the stockholders, but the corporation has not retired the shares.

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It should be recorded as a reduction of stockholders equity (i.e., as a contra-equity account). Since treasury stock is not considered outstanding for share count purposes, it should be excluded from average common shares outstanding for basic and diluted earnings per share.
Treasury stock is usually a corporations previously issued shares of common stock that have been purchased from the stockholders, but the corporation has not retired the shares.
Treasury stock is usually a corporations previously issued shares of common stock that have been purchased from the stockholders, but the corporation has not retired the shares.
Treasury stock is one of the various types of equity accounts reported on the balance sheet statement under the stockholders equity section as a contra-equity account.
There are mainly two methods of accounting for treasury shares: the cost method and the par value method. This section discusses the par value method.

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