As you saw in the video, stock can be issued for cash or for other assets. A few states allow companies to issue stock without a par value.In that situation, the entire amount received is entered in the common stock account. The question is asking us to prepare the journal entries needed to record the cash share issue and subsequent share issued costs. When shares are issued fully payable on application, the journal entries to record the issue and allotment (assuming the minimum subscription is reached) are: There must be a record of each individual cash transaction. IF the company sells the shares for less than the par value, then you would debit APIC. To record the declaration of a dividend, you will need to make a journal entry that includes a debit to retained earnings and a credit to dividends payable. The investors become owners of the company and are called stockholders. A journal entry must be recorded when a corporation issues stock.

Issued Shares For Cash Journal Entry In Michigan

Description

Related forms

Show more info

Form Rating

Form popularity

More info

Trusted and secure by over 3 million people of the world’s leading companies