[Mehwish]

Can someone explain which accounts to use when?

I felt like I got the hang of it, but than I started to do multiple choices, and I got them wrong.

I can’t understand which accounts should be debited or credited, esp in the par value method.

For the cost method, APIC is used for re-issuance if sold above purchase price, and RE if below purchase price.

Is this correct?

[Anonymous]

Cost reissuance 2 options depending on price of stock –

#1

Dr Cash

Dr APIC TS/RE

Cr TS

#2

Dr Cash

Cr TS

Cr APIC TS

What specific entry for Par Method are you looking for?

[Author]

Replies