Brawndo issued common stock and received $29,000,000. The par value of the Brawndo stock was only $34,000.
Question:
Requirements
1. Is the excess amount of $28,966,000 a profit to Brawndo?
2. Journalize the entry to record the stock issuance.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Req 1 The excess is not a profit and therefore has no effec...View the full answer
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Related Book For 
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
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