Stock splits no journal entry just adjust par value

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Unformatted text preview: gally sell b. Issued (=Outstanding+Treasury) - # shares firm has sold c. Outstanding - # shares currently held by investors II. Common stock vs. preferred stock III. Treasury stock – shares that a company has repurchased from investors a. Journal entries: i. When purchased Dr: Treasury stock (#shares x purchase price) Cr: Cash (#shares x purchase price) PREPARED BY: SARA TOYNBEE 3 IV. V. VI. ii. When resold Dr: Cash (#shares x selling price) Dr/Cr: APIC (magical balancing account J༄) Cr: Treasury stock (#shares x purchase price) Additional paid- in- capital (APIC) or called Capital Excess in Par Issuing stock a. Par value versus no par value stock b. Common/Preferred stock balances only reflect par value when there is a par value c. Journal entries: Dr: Cash (# shares x issue price) Cr: Common stock/Preferred stock (# shares x par) Cr: APIC (balance if required) Dividends a. Three dates i. Date of declaration Dr: Dividends Cr: Dividend payable ii. Date of record (shareholders holding the stock receive the dividend) No...
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This document was uploaded on 02/09/2014.

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