No Par Stock Journal Entry in Accounting

Shares of stock in a business are often issued with a par or nominal face value such as 0.001 per share. In certain jurisdictions no par stock can also be issued in which case proceeds received from the issue are credited to the capital stock account.

Last modified July 17th, 2019 by Michael Brown
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Preferred Stock Equity

What is preferred stock ? Preferred stock is a type of equity which gives stockholders additional benefits (preferences). The main benefit is that the preference stockholders are entitled to dividends and repayment of their investment on liquidation before any payments are made to common stockholders.

Last modified July 16th, 2019 by Michael Brown
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Stock Split

A stock split is used to reduce the market price of the capital stock of a business in order to make it more attractive to investors, and increase demand.

Last modified July 16th, 2019 by Michael Brown
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Dividends Declared Journal Entry

When a business declares a dividend part of the retained earnings of the business are distributed to the owners. The impact on the accounting equation is to increase the dividends payable liability and decrease the owners equity is the business.

Last modified July 16th, 2019 by Michael Brown
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Capital Stock Accounting

For a business which is operated through a company or corporation, the equity is referred to as shareholders’ equity and the capital introduced is referred to as capital stock or share capital, and represents ownership in the company or corporation. This ownership also gives the stockholder a right to a share in the retained earnings of the business.

Last modified July 16th, 2019 by Michael Brown
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Treasury Stock Cost Method Journal Entries

The treasury stock cost method journal entries below act as a quick reference, and set out the most commonly encountered situations when accounting for treasury stock using the cost method.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified July 16th, 2019 by Michael Brown
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Dividends

A dividend is a payment of a share of the profits of a corporation to its shareholders.

A dividend declared is a liability of the business on the dividend declaration date which becomes payable on the dividend payment dates.

Last modified July 16th, 2019 by Michael Brown
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Stockholders Equity Journal Entries

The stockholders equity journal entries below act as a quick reference, and set out the most commonly encountered situations when dealing with the double entry posting of stock holders equity.

In each case the journal entries show the debit and credit account together with a brief narrative.

Last modified July 16th, 2019 by Michael Brown
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