Why is the par value rather than the market value recorded in a stock account?
Answer to relevant QuestionsHow do journal entries reflect the market value of par value stock when the stock is first issued? Describe what the Discount on Notes Payable represents. Fleishman Corporation issued 5,000 shares of its no-par common stock for $ 28 per share and 510 shares of its $ 50 par value preferred stock for $ 52.50 per share. Prepare the journal entries to record the sale of the stock. ...Using the information in E15.9, how would your answer differ if Sprague, Inc., had declared a 50 per-cent stock dividend? Gland Corporation issued for cash a $ 400,000, 7 percent, three- year bond on September 1, 2010, that pays interest annually. Gland Corporation has a December 31 fiscal year- end. Make the entries for the first year of the ...
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