/biz/ - Business & Finance

>>15732215
Great posts.

Would you, or anyone else who might be able to answer, give your input of my explanation of pic related (I was trying to explain how issuance of common stock may have resulted in the reduction of Common Stock Amount and Retained Earnings):

https://www.accountingformanagement.org/treasury-stock-cost-method/

>if additional paid-in capital from a previously issued treasury stock is not available then additional paid-in capital-common stock is debited and if additional paid-in capital-common stock is also not available or is not sufficient, the retained earnings account is debited.

Apple Re-issued Common Treasury Stock (which are essentially repurchased stocks). They did so at a price below what they had paid to repurchase these stocks.

This results in a Loss (in the Contra-Equity sense, as opposed to an Expense).

Some of that Loss was allocated to the Common Stock Amount. The remainder of that Loss (that wasn't able to be "covered" by Common Stock Amount, through something called Additional Paid in Capital) was then Allocated to Retained Earnings.

Therefore, Common stock was issued, but resulted in a Reduction of Common Stock Amount and a Reduction of Retained Earnings.

Was originally posted in this thread: >>/biz/thread/S13490459#p13493303

>>13490459
I often use 4chan to think out loud, so to say.

Like this thread here, for example: >>13481391

You'll see me rambling about why I think, in that row, they lost Capital, despite issuing more common stocks, and why they incurred a loss in Retained Earnings.

I actually looked back at my accounting stuff from years ago, and I now think that happened because they issued Treasury Stock (by Apple purchasing their own common stock, it would decrease Common Stock Amount). Apple then Re-issued this Treasury Common Stock at a price below the amount they had purchased, resulting in a Loss, which is be recognized in a Reduction of Retained Earnings.

No one else asked 'what are talking about?', or offered to try and help my understanding. Gotta be the change you want to see, rather than making passive fag threads, like these.

>>13481391
Does this imply that they sold 37,624 units of common stock for $231?

Also, why is Retained Earnings being reduced, when they issue common stock?