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debit deposit for future subscription
credit cash / bank

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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.


What are Two types of non-deposit accounts?

Two types of non-deposit accounts are brokerage accounts and investment accounts. Brokerage accounts allow individuals to buy and sell stocks, bonds, and other securities, while investment accounts typically focus on mutual funds, exchange-traded funds (ETFs), and other investment vehicles. Unlike deposit accounts, these accounts do not offer interest on deposits and involve varying levels of risk depending on the investments chosen.


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.

Related Questions

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.


How can I buy stocks on Schwab?

To buy stocks on Schwab, you need to open a brokerage account with Charles Schwab, deposit funds into the account, research and select the stocks you want to buy, and then place an order through the Schwab trading platform.


Why do people by stocks?

because in the future there is a chance to get more money


How can I buy stocks on the NASDAQ exchange?

To buy stocks on the NASDAQ exchange, you need to open a brokerage account, deposit funds, research and select the stocks you want to buy, place an order through your brokerage account, and monitor your investments regularly.


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.


How can I buy stocks on Charles Schwab?

To buy stocks on Charles Schwab, you need to open a brokerage account with them, deposit funds into the account, research and select the stocks you want to buy, and then place an order through their online trading platform or by contacting a broker.


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.


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.


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.


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.