illustration entry for treasury stock reissue below cost

Treasury Stock Reissue Below Cost
Illustrative Entry

XX-XX-XX	Cash	200,000
	Paid in Capital in Excess of Par	50,000
	Treasury Stock		250,000
	To record reissue of 10,000 treasury shares at $20 per share

Note: If Paid-in Capital had an inadequate balance, Retained Earnings could be debited instead.