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    Cynthia Kunato's Avatar
    Cynthia Kunato Posts: 2, Reputation: 1
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    #1

    Apr 8, 2007, 03:25 AM
    Treasury Stocks
    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's Avatar
    pieeye12 Posts: 2, Reputation: 1
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    #2

    Apr 13, 2007, 02:19 PM
    Quote Originally Posted by Cynthia Kunato
    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.
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