Treasury stock par value method, treasury stock account is based on the par value per share of the common stock being repurchased , cash account records the actual cost to reacquire the shares as treasury stock and difference between cash account and treasury stock account is recorded as APIC (Additional Paid In Capital) Common Stock first to maintain relationship with par value and and remaining amount is recorded in APIC Treasury Stock and balance if needed is recorded in Retained Earnings with exception rules, the example includes complete detailed accounting calculations along with journal entires (balance sheet) for the different cases involving repurchase, reissuing and retiring treasury stock by Allen Mursau