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Referred to as paid-in capital.
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Some cash flows that are available to a stock investor include dividend payments and the cash flow that he can get upon the sale of the stock. Dividends are more suitable in the long run.
This is what I found on internet. Payments made in cash or property to a corporation by its stockholders either to buy capital stock, to pay an assessment on the capital stock, or as a gift. Also called paid-in capital. The contributed or paid-in capital of a corporation is made up of capital stock and capital (or contributed) surplus, which is contributed (or paid-in) capital in excess of http://www.answers.com/topic/par value or http://www.answers.com/topic/stated-value. Donated capital and http://www.answers.com/topic/donated-surplus are freely given forms of contributed (paid-in) capital, but http://www.answers.com/topic/donated-stock refers to fully paid (previously issued) capital stock that is given as a gift to the issuing corporation.
Treasury StockCommon stock that has been repurchased by the company and held in the company's treasury. These shares don't pay dividends, have no voting rights, and are not part of the total number of shares outstanding, although they are still counted as part of shares issued.See also "Stock Repurchase".Outstanding stock, purchased by the corporation, is known as treasury stock.The reasons as to why corporations buy back their outstanding stock include:☺to increase earnings per share and return on equity☺to provide tax efficient distributions of excess cash to shareholders☺to provide stock for employee stock compensation contracts☺to thwart takeover attempts☺to create or improve the market for the stock^_^
Debit "Cash" for $18,000 and credit "Equity - Common Stock" for $18,000.
Referred to as paid-in capital.
In addition to issuing bonds, corporations may borrow directly from any loan source, such as banks. On occasion, corporations raise needed cash by authorizing and selling additional stock.
This transaction would not appear on the statement of cash flows because it is a non-cash transaction. The statement of cash flows only shows transactions that involve inflows and outflows of cash.
Stock splits are not part of cash flow statement as due to stock split no cash inflow or outflow occurs.
In the stock market
treasury stock is shown under cash flow from financing activities as a reduction in cash.
dividend.
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Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.
Issued 14,118 shares of common stock for $14,118 cash.
Yes, cash received is an asset while stock issued is liability. Cash is asset because this cash now be use for the business benefit.