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Q: Is a decrease in common stock a source of cash?
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What is normally motivated by a desire to decrease the market price of common stock?

d) Residual Payout policy is the means to decrease the market price of a stock as it is a cash equivalent of Bonus Shares. As on issuance of Bonus Shares the stock price will decrease proportionately so too with Residual Payout in cash the stock price will decrease.


Cash Flow per share of Common Stock?

Issued 14,118 shares of common stock for $14,118 cash.


What would be the entry on subscribed capital stock?

Generally in the format of: Cash (cash paid up front) Common Stock Subscribed Receivable (remaining amount due) Common Stock Subscribed (Temporary 'Legal Capital' Account) Additional Paid In Capital - Common When fully paid, post: Cash (cash paid) Common Stock Subscribed Receivable Common Stock Subscribed Common Stock


What are the accounting journal entries to record depositing cash for common stock?

[Debit] Cash /bank [Credit] Common Stock


Where do you find common stock in the cash flow statement?

Common stock is shown under "Cash flow from financing activities" section of cash flow statement.


Where the event common stock issued for cash would appear indirect statement of cash flows?

Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.


What effect will the declaration and distribution of a stock dividend have on the net income and cash flows?

19. What effect will the declaration and distribution of a stock dividend have on net income and cash flows? (Points : 2)No effect on net income or cash flowsNo effect on net income, decrease cash flowsDecrease net income, decrease cash flowsIncrease net income, no effect on cash flows


What is a journal entry to buy equipment with common stock?

Equipment is not actually bought using common stock rather it is purchased from cash by issuing common stock so journal entry is : [Debit] Equipment [Credit] Cash / bank


Is paying cash for a dividend an increase or a decrease to your assets?

stock dividends what impact on total assets


Does an increase in common stock increase or decrease cash flow?

Increase in common stock would mean increase in stocks available for sale but that depends if the face value or market value per share increases too. If it increases, then there will be future cash inflow to the company when the said stocks available for sale are sold. If there is no increase, it will not affect the profitability of the business because it just means stock splits.


What is the journal entry for a stock issue?

Issuing Par Value Common Stock for Cash (assume par value is $1) dr. Cash $1.00 cr. Common Stock $1.00 to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5 cr. Common Stock $1 Paid-in Capital in excess of par $4 to record issuance of 1 share of common stock in excess of par.


What is the journal entry to decrease paid-up capital?

[Debit[ Treasury stock [Credit] Cash / bank / Goods