the distribution of earnings permitted to stockholders responsible for maintaining the company cash position.Ģ. preparing the finacial reports and taxesĢ. Maintianing an adaquate internal controlsģ. The controller is the Chief Accounting Officer and has 3 responsibilitiesĢ. The cost of a noncash asset acquired in exchange for common stock should be either the fair market value of the consideration given up or the consideration received, whichever is more clearly determinable. The term “Capital surplus” can be used instead of “Additional Paid-in Capital”. Treasury stock should not be classified as a current asset. They are expensed though Organizational Costs Expense account. ![]() Organizational costs are capitalized by debiting an intangible asset entitled Organization Costs. stock 5000Ī corporation can issue more shares than it is authorized in its charter, if the board of directors approves of an increase in the number of authorized shares.Īs soon as a corporation is authorized to issue stock, an accounting journal entry should be made recording the total value of the shares authorized. 28 Purchased 2,000 shares of treasury stock for $80,000. July 11 Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share. June 12 Issued 60,000 shares of $5 par value common stock for cash of $375,000. 2 Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services provided in helping the company to incorporate. Journalize the two treasury stock transactions. On September 1, it sells 300 shares of the treasury stock for cash at $11 per share. On July 1, Goetz Corporation purchases 500 shares of its $5 par value common stock for the treasury at a cash price of $8 per share. (remeber we do not use the adveritsing rate we use the most determineable amount) Journalize the issuance of the stock in acquiring the land. Kane issues 5,000 shares to purchase land advertised for sale at $85,000. Kane Inc.'s $10 par value common stock is actively traded at a market value of $15 per share. Journalize the issuance of the shares assuming the stock has a stated value of $1 per share ![]() issues 3,000 shares of no-par common stock at a cash price of $6 per share. ![]() On May 10, Mazili Corporation issues 2,000 shares of $10 par value common stock for cash at $18 per share Kunkel Corporation reports net income of $450,000. The amount per share assigned by the board of directors to no-par stock.Ī corporation's own stock that has been issued and subsequently reacquired from shareholders by the corporation but not retired. Net income that is retained in the corporation for future use. ![]() Stock Capital stock that has not been assigned a value in the corporate charter.Ĭosts incurred in the formation of a corporation.Ĭapital stock that has been issued and is being held by stockholders.Ĭapital Total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.Ĭapital stock that has been assigned a value per share in the corporate charterĬapital stock that has some preferences over common stock.Ī corporation that has only a few stockholders and whose stock is not available for sale to the general public.Ī corporation that may have thousands of stockholders and whose stock is regularly traded on a national securities exchange. The internal rules and procedures for conducting the affairs of a corporation.Ī business organized as a legal entity separate and distinct from its owners under state corporationĪ feature of preferred stock entitling the stockholder to receive current and unpaid prior-year dividends before common stockholders receive dividends. The amount of stock that a corporation is authorized to sell as indicated in its charter
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