Concept Introduction:
Types of Stocks:
These are two types of the share capital of a company. Common Stock represents the Common shares issued to the shareholders and preferred stock represents the
Issuance of Common Stock:
Common Stock may be issued at par or stated value. In case the issue price is more than the par or stated value, the shares are called to be issued at a premium and in case the issue price is less than the par or stated value, the shares are called to be issued at discount. Common stocks may also be issued at no par or stated value, in such case there shall be no premium or discount recorded on the issue of shares.
Requirement-a:
To Prepare: The
Requirement-b:
To Prepare: The Journal entry to record the issuance of no par value common stock for $70,000 cash.
Requirement-c:
To Prepare: The Journal entry to record the issuance of 2,000 shares of $25 par value common stock
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Chapter 13 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
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