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How do i Jounalize the issuing of 14500 shares if 30 par common stock at 48 for receiving cash?
Wiki User
∙ 9y ago
Debit Cash / bank 696000
Credit Share capital 435000
Credit Share premium261000
Wiki User
∙ 9y ago
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What is one major expense associated with issuing new shares of common stock?
Underpricing is one major expense associated with issuing new shares of common stock.
What is a business enterprise that raises money by issuing shares of stocks?
A business that raises money by issuing shares of stock?
What are the journal entries for issuing 45000 shares of common stock in exchange for land and building?
debit land and building 45000credit shares in share capital 45000
What are the 2 ways in which a public limited company may finance its activities?
# By Issuing Equity Shares or # By Issuing Corporate Bonds
Issuing shares of stock in exchange for cash is an example of?
financing activity
Is there any disadvantages to issuing shares?
By issuing shares you have sold a piece of the company to investors. Some of the disadvantages include: you will be answerable to the investors and you will have to disclose company information to them that you would have preferred your competitors didn't know.
Issued 12500 shares of 30 par common stock at 65 receiving cash how to journalize this entry?
To journalize this entry, you would debit Cash for the total amount received ($65 x 12500 shares = $812,500) and credit Common Stock for the par value of the shares issued ($30 x 12500 shares = $375,000). This entry represents the increase in cash received from issuing the shares and the corresponding increase in the equity of the company due to the issuance of common stock.
Why are shares issued at a premium?
Well the company wants to profit. And issuing shares at premium provides capital to the company without changing its equity capital.
What is the journal entry for issuing 1000000 shares of 1 par common stock in exchange for legal services?
[Debit] Legal Services expenses 1000000 [Credit] Share capital account 1000000
What is a convertible bond?
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
What is the meaning of forfeiture of shares how are shares forfeited can forfeited share be reissued at discount?
When a share is forfeited, then the shareholder no longer owes any remaining balance, he/she surrenders any potential capital gain on the shares and shares become the property of the issuing company.
Transaction for issuing shares in exchange for assets?
[Debit] Assets account [Credit] Share capital account
