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Concept explainers
a
Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.
The
b
Introduction: A corporation may issue shares at par or at the price more than the par value, the issuance of a common stock affects only paid-in capital and capital account.
The journal entry to record OP Co issuance of no-par value stock for $70,000 cash.
c
Introduction: If the shares are issued by an organization against acquiring an asset (other than cash), in such cases, the asset acquired by the organization is recorded at its market value. This market value is considered for the date on which such a transaction takes place. The stock is recorded at par or stated value in such a case.
The journal entry to record MPG, Issuance of 2,000 shares of $25 par value for $45,000 inventory, $145,000 of machinery, and acceptance of $94,000 note payable.
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Chapter 11 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningAccounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCorporate Financial AccountingAccountingISBN:9781305653535Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
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