BE12.3 (LO 2) On June 1, Federia Ltd. issues 4,500 no-par ordinary shares at a cash price of HK$600 pershare, Journalize the issuance of the shares assuming the shares have a stated value of HK$200 per share.DEIA

Stated value shares are those shares which has no par value. Par value is used to calculate the…

BE12.3 (LO 2) On June 1, Federia Ltd. issues 4,500 no-par ordinary shares at a cash price of HK$600 pen share, Journalize the issuance of the shares assuming the shares have a stated value of HK$200 per share. DE1A

BE12.3 (LO 2) On June 1, Federia Ltd. issues 4,500 no-par ordinary shares at a cash price of HK$600 pen share, Journalize the issuance of the shares assuming the shares have a stated value of HK$200 per share. DE1A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

BE12.3 (LO 2) On June 1, Federia Ltd. issues 4,500 no-par ordinary shares at a cash price of HK$600 per
share, Journalize the issuance of the shares assuming the shares have a stated value of HK$200 per share.
DEIA

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