Additional paid in capital difference between the cash and common stock

Additional paid in capital difference between the

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Cr. Additional paid in capital difference between the cash and common stock Repurchase of Stock (Treasury Stock): Dr. Treasury Stock Record at COST (what the company paid for it) Cr. Cash Reissuance of Treasury Stock:
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Dr. cash total cash received selling price x # shares sold Cr. Treasury stock record at company cost what co paid Cr. Additional padi in capital difference between cash and cost Cash Dividends 1. Declaration date –once declared, it becomes payable Dr. dividends declared Cr. Dividends payable 2. Date of record – stockholders holding stock will get paid dividend – no JE 3. Date of payment Stock Dividends: 1. No change in total stockholders’ equity 2. No change in par values 3. All stockholders retain same percentage ownership 4. NO cash involved 5. Simply re-arranging the equity Dr. Retained Earnings (-SE) xxx Cr. Common Stock (+SE) xxx **Small stock dividends are recorded at MARKET value; Large stock dividends are recorded at PAR value Stock Splits: 1. An increase in the total number of authorized shares by a specified ratio, such as 2-for-1; 2. Retained earnings is NOT affected; does not decrease retained earnings 3. Number of authorized and outstanding shares increases 4. Par value decreases 5. NO journal entry required
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  • Fall '11
  • Pizza
  • Generally Accepted Accounting Principles, dr. cash,  Buys goods

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