July 20, 2009
Where do preferred stocks go on the P&L?
The amount received from issuing preferred stock is reported on the balance sheet within the stockholders’ equity section.
Only the annual preferred dividend is reported on the income statement. The annual preferred dividend requirement is subtracted from a corporation’s net income and the remainder is described as the Income Available for Common Stock.
Learn more about Stockholders’ Equity.
Comments
2 Responses to “Where do preferred stocks go on the P&L?”
Leave a Reply




I love learning accounting because i want to know alot about the accounting as a course. I love your tutorials because they are simple and easy to understand. I will be taking these lessons from time to time. I just had the opportunity of starting today. I have taken notes and i would go through them when i go home.Please i would love to have practical scenarios where i can open accounts and practise more when i am at home. Can i also get a certificate after i thoroughly go through your course outline?
if cheque bounce
what will the entry to be pass according to the journal entries