| Equity Issues and discussions related to accounting for expenses, revenues and other areas that relate to owner's or stockholders equity. |
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07-25-2008, 08:46 PM
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#1 (permalink) |
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Stock issuance question
How is the income statement affected when a company issues stock?
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07-25-2008, 08:46 PM
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#2 (permalink) |
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That is an easy one.... No income statement effect. Purely balance sheet
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Conrad T. Wing, CPA |
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07-26-2008, 11:38 PM
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it doesn't affect the income statement at all as the income statement includes revenues and expenses it will affect the equity section in the balance sheet
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03-04-2010, 09:46 PM
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The only "initial" effect on the income statement is in the calculation of earnings per share. Until the capital that has been raised has been deployed, net income stays the same but the share count has increased.
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