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Cynthia Kunato
Apr 8, 2007, 03:25 AM
In a balance sheet, Does the Treasury Stock have to be subtracted from retained earnings?

Why is it so, because I am facing a problem and I don't really understand it in my financial accounting class?

pieeye12
Apr 13, 2007, 02:19 PM
In a balance sheet, Does the Treasury Stock have to be subtracted from retained earnings?

Why is it so, because i am facing a problem and i don't really understand it in my financial accounting class?
Yes,
Treasury stock is usually a repurchase of co. stock. Because a co. asset-cash- is used, the result is a reduction of shareholder equity.