The Stockholders' Equity section of Sea Scape, Inc.'s balance sheet on January 1, 2015, appeared as follows:
A On March 1, 2015, Sea Scape resold 800 shares of treasury stock at $25 per share.
What is the effect of the March 1 transaction on the accounting equation?
B Why is the excess of the sales price of the 800 shares of treasury stock over the cost
not reported on the income statement?

Question

The Stockholders' Equity section of Sea Scape, Inc.'s balance sheet on January 1, 2015, appeared as follows:
  A On March 1, 2015, Sea Scape resold 800 shares of treasury stock at $25 per share.
What is the effect of the March 1 transaction on the accounting equation?
  B Why is the excess of the sales price of the 800 shares of treasury stock over the cost
not reported on the income statement?

Quizplus · Accepted Answer

The Answer of The Stockholders' Equity section of Sea Scape, Inc.'s balance sheet on January 1, 2015, appeared as follows:
  A On March 1, 2015, Sea Scape resold 800 shares of treasury stock at $25 per share.
What is the effect of the March 1 transaction on the accounting equation?
  B Why is the excess of the sales price of the 800 shares of treasury stock over the cost
not reported on the income statement?

The Stockholders' Equity Section of Sea Scape, Inc