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To increase a company's authorized capital, several forms and steps are typically required, varying based on jurisdiction. Here’s an overview of the general process:
Board Resolution: The board of directors must pass a resolution approving the increase in authorized capital. This is the first step before filing any formal paperwork.
Shareholder Approval: A shareholder meeting is often required, where shareholders approve the resolution to increase the capital. A special resolution may be passed.
Filing with the Registrar: A company must file the relevant forms with the country’s corporate registry (e.g., Companies House in the UK, SEC in the US). These forms usually include:
Form A (or equivalent): Detailing the increase in capital.
Special Resolution: Certified copy of the shareholder resolution.
Amended Articles of Association: Reflecting the new authorized capital.
Payment of Fees: Filing fees may be due, depending on the increase in capital.
What else can I help you with?
What would be the entry on subscribed capital stock?
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
The journal entry to issue 1000000 shares of 5 dollars par common stock for 7dollars per share on January 2nd would be?
debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000
What is the journal entry for deposit for future subscription in stock and withdrawal of this deposits?
When a deposit for a future subscription in stock is made, the journal entry would be a debit to "Cash" and a credit to "Deposits for Future Stock Subscriptions." When the deposit is withdrawn, the entry would involve debiting "Deposits for Future Stock Subscriptions" and crediting "Cash." This reflects the movement of cash and the corresponding reduction in the liability associated with the subscription deposit.
Would the entry to transfer net income to the owner's capital account would include a debit to the owner's capital account?
No, the entry to transfer net income to the owner's capital account would not include a debit to the owner's capital account. Instead, it would involve a credit to the owner's capital account to increase it, reflecting the net income earned. The corresponding debit would typically be to the income summary or the retained earnings account, depending on the accounting method used. This entry effectively moves the net income from temporary accounts to the owner's equity.
What is the journal entry debiting cash and crediting capital would be a result of a?
she invested P 50, 000 in cash to start his business
What would be the entry on subscribed capital stock?
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
What would be the journal entry for purchased 5000 shares of its own stock for 10 per share?
General entry in company books as follows: [Debit] Cash/Bank 50000 [Credit] Share capital 50000
The journal entry to issue 1000000 shares of 5 dollars par common stock for 7dollars per share on January 2nd would be?
debit cash 70000000credit shares in share capital 5000000credit premium on shares capital 2000000
How would you earn a capital gain on your stock?
Buy cheap and sell high.
Treasury stock plus outstanding shares would be?
Issued Shares Authorized Shares = Issued Shares (sold to investors) + Unissued Shares Issued Shares = Outstanding Stock (held by investors) + Treasury Stock (stock bought back by company)
What is the journal entry debiting cash and crediting capital would be a result of a?
she invested P 50, 000 in cash to start his business
How do I account for inventory that comes directly from a Shareholder - I have set up a shareholder inventory account but do not know what the other side of the entry should be. This is a corporation?
It depends. What is the shareholder getting in return? Is payment expected? Is stock being issue? The specific inventory asset probably doesn't need to be identified separately as shareholder inventory. If there is no stock or repayment expected then it should probably go to the Equity Account "Paid in Capital". But, this is a good question to ask your CPA.
What are advantages of preferred stock?
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
Why preferred stock is issued by company?
One reason is raise capital for a company without sacrificing the control of company. Issuing common stock would do this.
Where is a drawings account recorded in double entry booking?
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.
Is Atlantic Pacific and Gulf Oil Company still in business?
the company was incorporated in Delaware in 1928. They had authorized capital stock with 20,000 shares of preferred stock at $25 par value per share, and 100,000 shares of common stock class A without par value and 20,000 shares of class B. I have not been able to find whether this company was taken over or the name changed. I would like to know. Howard Shortley----shortleyh@surewest.net
How would you identify the optimal cost of capital for an organization?
To identify the optimal cost of capital for an organization the cost of debt and equity is needed. The preferred stock is also needed.
