Common stock balance sheet disclosure requirements


Using the following accounts and balances, prepare the Stockholders’ Equity section of the balance sheet. Two hundred fifty thousand shares of common stock are authorized, and 17,500 shares have been reacquired. Cash and cash equivalents are reported as assets (resources) on balance sheets. Unlike the relatively simple balance sheets presented in earlier chapters, most companies prepare classified balance sheets. A classified balance sheet is designed to help users identify and understand many different types of assets, liabilities, and stockholders ... The discount on common stock account is used to record the discount. This account is a contra equity account that reduces the common stock par value on the balance sheet. Notice that this is a balance sheet account—not an income statement account. The discount is not recorded as an expense and is not presented on the income statement. Accounting Reforms. Reforms include better disclosure of corporate balance sheet information. Items such as stock options and offshore investments are to be disclosed so that investors may better judge if a company is actually profitable;4. Separation between Investment Banking and Brokerage Research. We have reviewed the accompanying balance sheets of Virtuoso Construction Company, Inc. as of December 31, 20YY and 20XX, and the related statements of earnings, stockholders’ equity and cash flows for the years then ended, in accordance with Statements on Standards May 12, 2000 · A balance sheet is a snapshot of a business's financial condition at a specific moment in time, usually at the close of an accounting period. ... Common stock This is stock issued as part of the ...