0
treasury stock is shown under cash flow from financing activities as a reduction in cash.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What is the journal entry for repurchasing common stock as treasury stock?
Debit treasury stockCredit cash / bank
Does the acquisition of treasury stock increase cash?
Treasury stock is stock that the issuing company buys back from the shareholders. Since the company is buying back its own shares, it decreases cash and stockholder equity, but increases a new balance called "Treasury Stock".
Are stock splits on statement of cash flows?
Stock splits are not part of cash flow statement as due to stock split no cash inflow or outflow occurs.
How do you record journal entry for purchase of treasury stock?
debit treasury stockcredit bank / cash
Where do you find common stock in the cash flow statement?
Common stock is shown under "Cash flow from financing activities" section of cash flow statement.
What effect does the purchase of treasury stock have on net income?
Purchase of treasury stock has no effect on the net income of a business. The purchase may affect cash flow of the business. No profit or loss is claimed when shares are re-issued at above or below cost.
Are dividends paid on treasury stock?
cash dividends are not paid on treasury stock, but what about stock dividends? I would think stock dividends would apply to treasury shares, but would like to know for sure. Also, I assume stock splits apply to treasury shares and would like this verified.
Are cash dividends normally paid on shares of treasury stock?
True.
What is the journal entry for purchasing 400 shares of treasury stock at 7 per share?
debit treasury stock 2800credit cash / bank 2800
When an owner buys stock what is the journal entry?
debit own stock / treasury stockcredit cash / bank
Where the event common stock issued for cash would appear indirect statement of cash flows?
Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.
What is the journal entry on resale of treasury stock?
[debit] cash / bankcredit share capital
