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Assigned value per share that is established

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assigned, value per share that is established permanently by the corporate directors and is inassigned, value per share that is established permanently by the corporate directors and is inthe laws. Most corporations use a stated value for no par stock.the laws. Most corporations use a stated value for no par stock.9.7.2 Issuance of Par-value Stocks9.7.2 Issuance of Par-value Stocks9.7.2.1 Authorization9.7.2.1 AuthorizationAuthorization of par value stocks, specified in the unit may be recorded as a memo entry inAuthorization of par value stocks, specified in the unit may be recorded as a memo entry inthe general journal and in the ledger accounts. Most states require the total number of sharesthe general journal and in the ledger accounts. Most states require the total number of sharesauthorized be shown on each stock certificate, in addition to the number of shares representedauthorized be shown on each stock certificate, in addition to the number of shares representedby that particular stock certificates.by that particular stock certificates.9.7.2.2 Par value stock issued for cash9.7.2.2 Par value stock issued for cashWhen stocks are issued to various investors, a stock certificate specifying the number ofWhen stocks are issued to various investors, a stock certificate specifying the number ofshares represented is prepared for each investor/or stockholder. When par value stock is issuedshares represented is prepared for each investor/or stockholder. When par value stock is issuedfor cash, the capital stock account is credited with the par value of the shares issued regardlessfor cash, the capital stock account is credited with the par value of the shares issued regardlessof whether the issuance price is more or less than par. If par value stock is issued for moreof whether the issuance price is more or less than par. If par value stock is issued for morethan par value (at premium), paid in capital in excess of par account is credited for the excessthan par value (at premium), paid in capital in excess of par account is credited for the excessof selling price over par. This paid in capital is excess of par does not represent a profit to theof selling price over par. This paid in capital is excess of par does not represent a profit to thecorporation rather it is part of the invested capital. If par value stock is sold by corporation forcorporation rather it is part of the invested capital. If par value stock is sold by corporation forless than par (at discount), a negative stockholders’ equity accounts, Discount on common (orless than par (at discount), a negative stockholders’ equity accounts, Discount on common (orpreferred) stock, is debited for the amount of the discount.preferred) stock, is debited for the amount of the discount.

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Chapter 25 / Exercise 6
College Accounting, Chapters 1-27
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Term
Spring
Professor
Dr. Laximikantam
Tags
Depreciation, retail price, Br
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
College Accounting, Chapters 1-27
The document you are viewing contains questions related to this textbook.
Chapter 25 / Exercise 6
College Accounting, Chapters 1-27
Heintz/Parry
Expert Verified

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