Common stock and its issue: Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”. Requirement 1 To record journal entry for – a. Issue of stock if the stock is true no-par stock b. Issue of stock if the stock has stated value of $ 2 per share

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Answer 1

Question

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

To determine

Requirement 2

Which type of stock results in more total paid-in capital

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Answer 2

Question

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Expert Solution & Answer

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Answer 4

Question

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Expert Solution & Answer

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Answer 5

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Answer 6

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

Answer 7

Chapter 13, Problem E13.20E

To determine

Concept Introduction:

Common stock and its issue:

Common stock can be defined as the share of issue to raise funds for the operations of the business. The common shares can be issued at a premium i.e. a price above par value. When the common stocks are issued at a price above par value, the over and above cash received from the par is added to “Additional paid in capital”.

Requirement 1

To record journal entry for –

a. Issue of stock if the stock is true no-par stock

b. Issue of stock if the stock has stated value of $ 2 per share

Answer 8

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Answer 9

To determine

Requirement 2

Which type of stock results in more total paid-in capital

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 13 - Prob. 1QC Ch. 13 - Prob. 2QC Ch. 13 - Prob. 3QC Ch. 13 - Prob. 4QC Ch. 13 - Prob. 5QC Ch. 13 - Prob. 6QC Ch. 13 - Prob. 7QC Ch. 13 - Prob. 8QC Ch. 13 - Prob. 9QC Ch. 13 - Prob. 10QC

Requirement 2 Which type of stock results in more total paid-in capital

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Chapter 13 Solutions

Requirement 2

Which type of stock results in more total paid-in capital