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
There is no entry required for authorized capital as it is just the information purpose that a company can issue that much of capital maximum.
debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000
she invested P 50, 000 in cash to start his business
Debit Capital stock xx Credit Cash xx Generally you would offset costs of issuing common or preferred stock against the similar equity account.
That would be in the equity section for a corporation as an addition to "capital stock" (the par value of the stock) and an addition to "additional paid in capital" (the amount the stock was purchased for less the par value).
There is no entry required for authorized capital as it is just the information purpose that a company can issue that much of capital maximum.
General entry in company books as follows: [Debit] Cash/Bank 50000 [Credit] Share capital 50000
debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000
Buy cheap and sell high.
she invested P 50, 000 in cash to start his business
When inventory is contributed by a shareholder, you should credit the shareholder inventory account to reflect the increase. The other side of the entry depends on whether the shareholder is purchasing the inventory or contributing it as a capital contribution. If the shareholder is purchasing the inventory, you would debit the cash or accounts payable account. If it is a capital contribution, you would debit the shareholder equity account, specifically the common stock or additional paid-in capital account.
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
It would be a credit to bank and a debit to the capital account. Most of the time there will be a drawings account, but it will be by the capital in the balance sheet.
To identify the optimal cost of capital for an organization the cost of debt and equity is needed. The preferred stock is also needed.
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.
Debit Capital stock xx Credit Cash xx Generally you would offset costs of issuing common or preferred stock against the similar equity account.