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Balance Sheet for a company financed 100% by debt

If a firm is 100% financed by debt, where would the net income (retained earnings) from the firm's income statement be shown on the balance sheet? In other words, how are retained earnings that are used to finance the firm in the future handled on the balance sheet when there is no owner's equity?


Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

As far as I know, there can be just a R/E account. You won't have any stockholder equity accounts. For example:
$100 cash
$100 inventory

$100 a/p

R/E $100

Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Brain teaser.....How was the company formed and registered ? No shares of stocks or shareholders? Isnt it that RE is a part of "Owner's Equity" classification?


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