Respuesta :
- If a company repurchases their stock, it should be recorded at whatever price was paid, not what the fair market value of the stock might be.
- In this case, it would be $10,300,000. If the stock repurchased was going to be permanently retired, the par value (common stock line) would be reduced by $100,000 ($1 par x 100,000 shares) and the capital surplus line (APIC) would be reduced by $10,200,000 adding up to $10,300,000.
- Since the shares might be reissued one day, a negative equity account called "treasury stock" will be created for the $10,300,000.
What is balance sheet simple words?
- A balance sheet is a financial statement that lists the assets and liabilities of a corporation at a certain point in time.
- It is one of the three primary financial statements the other two being the income statement and cash flow statement that are used to assess a company's performance.
What is a balance sheet and what is its purpose?
- An organization's assets, liabilities, and equity at the conclusion of an accounting period are listed in a balance sheet, which is a financial snapshot.
- Balance sheets are frequently used by investors and business owners to assess the overall financial health of their companies.
What is in a balance sheet?
- An organization's assets, liabilities, and owner equity as of any given date are listed on a balance sheet.
- Usually, a balance sheet is created at the conclusion of predetermined periods (e.g., every quarter; annually).
- In a balance sheet, there are two columns.
- The company's assets are listed in the column on the left.
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