The Basic Accounting Equation Financial Accounting
Metro Courier, Inc., was organized as a corporation on January 1, the company issued shares (10,000 shares at $3 each) of common stock for $30,000 cash to Ron Chaney, his wife, and their son. Organizations use the equation to understand a holistic and descriptive financial statement picture. It can be used for deep diving into the […]
Expanded Accounting Equation Definition, Examples
Share repurchases are called treasury stock if the shares are not retired. Treasury stock transactions and cancellations are recorded in retained earnings and paid-in-capital. Because the Alphabet, Inc. calculation shows that the basic accounting equation is in balance, it’s correct. If the net amount is a negative amount, it is referred to as a net […]