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When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
Debit treasury stockCredit cash / bank
Cost of sales = opening stock + purchases-closing stock Cost of sales = opening stock + purchases-closing stock
Treasury stock is a stockholders equity stock. Treasury stock is stock that a company buys back in order to reduce the amount of outstanding stock available on the market.
the treasury stock account
no.
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.
When a company purchases stocks, it is shown as an investment on the Asset side of the Balance Sheet. However, if a company buys back its own stock, it is shown in the Retained Earnings section of the Balance Sheet as Treasury Stock.
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
Debit treasury stockCredit cash / bank
Treasury Stock
Treasury Stock is the stock that the corporation has sold and then reacquired. Treasury Stock is a Contraequity account that increases when debited and decreases when credited. Does this answer your question.
1. Treasury stock is a corporation's own stock that has been issued, fully paid for, and reacquired by the corporation and is being held in it's treasury for future use.
Treasury stock is a contra-equity account. It reduces shareholder's equity to its true value.
Cost of sales = opening stock + purchases-closing stock Cost of sales = opening stock + purchases-closing stock