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What is the journal entry for deposit for future subscription of stocks?
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∙ 9y ago
debit deposit for future subscription
credit cash / bank
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∙ 9y ago
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What is the journal entry for deposit for future subscriptions of stocks?
Any Prepayment would result in a general entry as follows: DR X Prepayment/Deposit (A) xxxx CR Bank (A) xxxx assuming the Prepayment meets the asset definition and recognition criteria which are: 1) Resource Controlled By the Business 2) Due to a Past Event 3) From which future economic benefits are expected to flow 4) Is Measurable 5) Future Economic benefits are probable applying it: The Entity has a legal right (resource) due to the payment (past event) that will entitle it to claim services/goods (future economic benefit). It is valued at the cash price payed (measurable) and the transacting party is likely to comply with the legal right (FEB Probably). You can use this for any deposit payed and should be applicable to the subscription of stocks.
Company decide to issue 100 stocks but they sold just 50 stocks. Issued capital is 100 stocks or 50 stocks?
Company will record the issue of 50 shares only as remaining 50 shares are not purchased by investors and only the subscribed and paid up capital is recorded.
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 purpose of a financial statement analysis?
The goal in analyzing financial statements is to assess a company's past performance, current financial position; and to make predictions about the company's future performance. This directly relates to stocks, bonds, and other financial instruments.
Are common stocks considered an expense?
Common stocks are indeed considered an expense. However, if the company from which the stock is issued is not profitable, it could be considered a liability.
What is the journal entry for deposit for future subscriptions of stocks?
Any Prepayment would result in a general entry as follows: DR X Prepayment/Deposit (A) xxxx CR Bank (A) xxxx assuming the Prepayment meets the asset definition and recognition criteria which are: 1) Resource Controlled By the Business 2) Due to a Past Event 3) From which future economic benefits are expected to flow 4) Is Measurable 5) Future Economic benefits are probable applying it: The Entity has a legal right (resource) due to the payment (past event) that will entitle it to claim services/goods (future economic benefit). It is valued at the cash price payed (measurable) and the transacting party is likely to comply with the legal right (FEB Probably). You can use this for any deposit payed and should be applicable to the subscription of stocks.
What is the differences of certificate of deposit and stocks and bond?
A certificate of deposit (CD) pays a specified rate of interest over a specified period of time and your return is quantifiable from day one. The return on stocks and bonds will vary over time depending on market and economic factors and interest rate changes thus making it impossible to predict exact future returns. The benefit of a CD is that they are usually insured by the Federal Deposit Insurance Corporation and there is no risk of loss. The drawback of a CD is that your return is capped. Stocks and bonds, although subject to market risk, typically deliver returns in excess of a CD.
Why do people by stocks?
because in the future there is a chance to get more money
What is the word for money used to buy stocks that may provide substantial future profits?
The term used for money that is used to buy stocks that may provide substantial future profits, is capital.
What is the proper word to describe money used to buy stocks that may provide substantial future profits?
Money used to buy stocks that may provide substantial future profits are called investments.
What is the proper word to describe money used to buy stocks that may provide substantial future profits profits?
Money used to buy stocks that may provide substantial future profits are called investments.
How often is the Denver Business Journal published?
The Denver Business Journal is a news website for business and stocks so it is updated instead of being published whenever news concerning business is released.
An organization that helps private individuals and corporations purchase stocks bonds certificates of deposit or notes is called?
an investment firm.
Can someone get information on stocks at ft.com?
Yes, you can retrieve many useful data from ft.com. In fact, the Financial Times can give you a great deal of relative information on stocks, mutual funds and certificates of deposit.
How about nifty future will it b bullish or bearish?
Nifty market is depend on the 50 stocks . If these stocks move the levels of nifty is move. So all nifty market depends on the index of these 50 stocks.
What are the best future growth stocks?
http://www.fool.com/investing/high-growth/2005/06/22/4-growth-stocks-under-10.aspx
Is McDonald's a good company to invest with?
Not at the moment but maybe in the future because stocks are very low
