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Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
Capital structure
The most expensive source of capital is: a. preferred stock b. new common stock c. debt d. pretained earning
An example of the growth factor in common stock is retaining profits in order to reinvest into the firm
Treasury stock is contra of capital stock used by company to purchase own capital stock to reduce the paid in capital.
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
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Capital amount paid for excess of par value of common stock is called "Share premium amount" which is also part of capital of business.
Common stock is a portion of capital of company and capital has a credit balance that's why common stock also has a credit balance and shown under owner's equity portion under liability side of balance sheet
Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
Capital structure
Treasury stock is contra to share capital account as it is those shares which company purchase from own capital to reduce the share capital amount.
The most expensive source of capital is: a. preferred stock b. new common stock c. debt d. pretained earning
Cash Common Stock Paid in Capital
The most expensive source of capital is: a. preferred stock b. new common stock c. debt d. pretained earning