Treasury stock is recorded in the shareholder's equity section of a balance sheet as a contra-equity account, meaning it reduces the total shareholders' equity by the amount paid for the stock.

This approach helps investors and analysts understand how converting these securities could dilute existing shareholders’ ...

The income statement is a summation of the ... Adding ending owners' equity, cash dividends paid, and treasury stock purchased, we get $1,350,000. Subtracting from that the new shares issued ...