Question: Why is the distinction between contributed capital paid in capi
Why is the distinction between contributed capital (paid-in capital) and retained earnings important?
Answer to relevant QuestionsWhat is meant by par value, and what is its significance to shareholders?Kim Inc. recently noted that its 4% preference shares and 4% participating preference shares, which are both cumulative, have priority as to dividends up to 4% of their par value. Its participating preference shares ...On February 1, 2010, Gruber Corporation issued 3,000 shares of its £5 par value ordinary shares for land worth £31,000. Prepare the February 1, 2010, journal entry.Before Smith Corporation engages in the treasury share transactions listed below, its general ledger reflects, among others, the following account balances (par value is £30 per share).InstructionsRecord the treasury share ...The following note related to equity was reported in Wiebold, Inc.’s (USA) annual report. On February 1, the Board of Directors declared a 3-for-2 share split, distributed on February 22 to shareholders of record on ...
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