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There are no accounts listed. Therefore, it is hard to determine which account is not a subdivision of retained earnings. Expenses are not a subdivision of retained earnings.
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∙ 10y ago
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Would a purchase of treasury stock affect retained earnings?
Answer:The purchase of treasury stock does not affect retained earnings. When the company owns treasury stock, then 'treasury stock' has a debit balance. It is nevertheless presented under equity, with a negative sign.(Technically, when a T-account switches from debit to credit - or the other way around - the sign flips.)Nevertheless, a subsequent sale of treasury stock can affect retained earnings when the amount received is below the cost (a loss is made). This loss is subtracted from retained earnings if there are no cumulative gains on prior sales of treasury stock.
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Does common stock go on an income statement?
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Below-
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