Financing activities section
omprehensive ExampleThe common stock portion of the equity section of Apple Inc. balance sheet as at 24 September 2011 is given below:Common stock (no par value):Shares authorized1,800,000Shares issued and outstanding929,277Value in million Dollars13,331 It provides the following information:The company has no par value stock.There is no stated value disclosed.Authorized share capital is 1.8 million shares.The company has issued roughly half of its authorized share capital as at 24 September 2011.The company has no treasury stock that is why shares issued and shares outstanding are equal.
Issued stock means you have some item for sale. you sold some quantity from that stock that's issued stock
no
10
debit cashdebit promotional feecredit share capital
Common stock is shown under "Cash flow from financing activities" section of cash flow statement.
Common stock issued for cash will be appear under cash flows from financing activities in indirect method of cash flow statement.
Common stock is that amount which invest by third party investors in business and a capital for business and liability for business and like all other liabilities shown under liabilities section of balance sheet it is also shown under liabilities section of balance sheet and not in income statement.
declaration of a stock dividend
Common stock is part of owners equity and like all owner equity accounts it is also shown in equity section of balance sheet.
Issued 14,118 shares of common stock for $14,118 cash.
common stock, preferred stock, and bonds
Authorized stock becomes liability only once it is issued which is called issued capital and authorized capital is just there as an statement to inform the maximum amount of issued share capital.
declaration of a stock dividend
a separate schedule
False
omprehensive ExampleThe common stock portion of the equity section of Apple Inc. balance sheet as at 24 September 2011 is given below:Common stock (no par value):Shares authorized1,800,000Shares issued and outstanding929,277Value in million Dollars13,331 It provides the following information:The company has no par value stock.There is no stated value disclosed.Authorized share capital is 1.8 million shares.The company has issued roughly half of its authorized share capital as at 24 September 2011.The company has no treasury stock that is why shares issued and shares outstanding are equal.