[Anonymous]

Okahy so I keep getting confused by this.

Is APIC – Tstock a separate account from regular APIC?

I guess for that matter are all APIC accounts separate from each other? For example if I had a $500 credit balance in APIC and sold preferred shares over par and credited APIC – P/S for $50 would my total APIC= $550? or would it be:

APIC – C/S= $500

APIC – P/S= $50

The big issue I keep running into here is the PAR value method and COST method for Tstock. I know you have to credit RE for any excess reduction over your APIC – Tstock account, but does that draw from total APIC or just APIC – Tstock?

For example if I had a $100 loss repurchasing treasury shares: $100 balance (credit) in APIC and $50 balance (credit) in APIC – Tstock would it be

DR: Apic – Tstock 50

DR Apic – RE 50

OR

DR: Apic – 100 (Since there is a total of $150 balance APIC and APIC – Tstock combined)

Becker doesn’t really do a good job explaining what the APIC – Tstock account actually is other that CR: Gains DR: Loss

[Anonymous]

bump

[Anonymous]

bump

[ScarletKnightCPA]

Without wanting to run through my notes I want to say that Yes the accounts are separate but don't quote me on that. It draws just from the stock specific apic account until it is depleted. That's just how I recalled it being in the practice questions and at work that looked like that's how it was done.

Far: 76 (Wiley Test Bank)
Aud: 77 (Wiley Test Bank)
Reg: 61, 76 (Wiley book, Wiley Test Bank)
Bec: 86 (Wiley Test Bank)

MBA in progress

[mhueycpa]

APIC-TS is separate from other APIC. When doing the entries you are talking about you hit APIC-TS first all excess goes to RE, not other APIC.

THE 300 CLUB WILL DO JUST FINE!

[Anonymous]

Thanks guys, thats what I was thinking, but I wasn't sure. It seems like some questions in Ninja make it seems as though you are drawing from a single aggregated APIC account.

So just for further clarification. Is APIC – TS the only APIC account that is separated? or are they all different?

For example, say I had

CR: APIC – Preferred Stock 50

CR: APIC – Options 50 (from a deferred compensation agreement)

CR: APIC – Commons Stock 50

CR: APIC – Treasury Stock 25

Would my balance sheet presentation be:

CR: APIC 150

CR: APIC – TS 25

or are each of these APIC accounts presented separately?

[Author]

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