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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
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What would be the entry on authorized capital 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.
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 debiting cash and crediting capital would be a result of a?
she invested P 50, 000 in cash to start his business
Whats is the Journal entery for costs of issuing stock?
Debit Capital stock xx Credit Cash xx Generally you would offset costs of issuing common or preferred stock against the similar equity account.
Where do you post owners contribution for a new company in the general ledger?
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).
What would be the entry on authorized capital 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.
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.
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?
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.
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.
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.
Issued 12500 shares of 30 par common stock at 65 receiving cash how to journalize this entry?
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.
Whats is the Journal entery for costs of issuing stock?
Debit Capital stock xx Credit Cash xx Generally you would offset costs of issuing common or preferred stock against the similar equity account.
