Issuing Common Stock for Assets or Services definitions Flashcards
Issuing Common Stock for Assets or Services definitions
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Common Stock Equity account representing ownership shares issued by a corporation, recorded at par value when exchanged for assets or services. Par Value Nominal value assigned per share of stock, used to allocate amounts in equity accounts during stock issuance. Additional Paid-In Capital Equity account capturing the amount received from stock issuance above par value, often abbreviated as APIC. Fair Market Value Current price at which an asset or service would change hands between willing parties, used for recording non-cash stock exchanges. Asset Account Ledger category tracking resources owned by a company, such as buildings, increased when stock is issued for assets. Legal Expense Cost category reflecting the value of legal services received, debited when stock is issued in exchange for such services. Equity Residual interest in company assets after liabilities, increased by stock issuance and affected by expenses. Journal Entry Formal accounting record documenting the exchange of stock for assets or services, showing debits and credits. Building Account Specific asset account increased when a company receives a building in exchange for stock. Shares Units of ownership in a corporation, issued to investors or service providers in exchange for value. Book Value Historical cost of an asset minus accumulated depreciation, not used for recording stock-for-asset exchanges. Accumulated Depreciation Total depreciation recorded against an asset, provided for information but not used in stock issuance entries. Income Statement Financial report where expenses like legal services are recorded, impacting net income and equity. Debit Accounting entry increasing assets or expenses, used for asset or expense accounts in stock-for-value transactions. Credit Accounting entry increasing equity accounts, used for common stock and APIC when stock is issued for assets or services.
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