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.
Tag: Shares
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.
Stock Split Accounting
Dividends Declared Journal Entry
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.
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.
Dividends in Accounting
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.