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Oops the posting monster ate my indentations for the credits from my previous post. So make it;

"If the shares are sold (maybe the same rules apply for issuing for stock options) at a price over the price paid for the treasury stock the entry will be :

...Treasury Stock
...PIC from treasury stock

If the shares were issued at prices below the what was paid for the treasury stock then the entries are:

Paid in capital from treasury stock (or see note 1)
...Treasury stock

Note 1: If there is no paid in capital from treasury stock then retained earnings are debited (reduced)."

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