How is the income statement affected when a company issues stock?
How is the income statement affected when a company issues stock?
That is an easy one.... No income statement effect. Purely balance sheet![]()
Conrad T. Wing, CPA
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
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.
There are currently 1 users browsing this thread. (0 members and 1 guests)
Bookmarks