Issuing No Par Value Stock definitions Flashcards
Issuing No Par Value Stock definitions
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Common Stock Equity account representing ownership shares issued by a corporation, credited with all proceeds when no par value is assigned. No Par Value Characteristic of stock issued without a nominal or face value, simplifying accounting entries by eliminating par-related calculations. Journal Entry Formal accounting record documenting the transaction of issuing shares, showing debits and credits for cash and equity accounts. Additional Paid-In Capital Equity account used for amounts received above par value; not used when stock has no par value. Proceeds Total cash received from the sale of shares, fully credited to the common stock account when no par value exists. Selling Price Amount per share or total amount received from investors for issued stock, used to calculate total proceeds. Shares Units of ownership in a corporation, representing a claim on part of the company’s assets and earnings. Equity Ownership interest in a corporation, increased by proceeds from issuing common stock. Cash Asset account increased by the amount received from issuing shares, representing funds raised from investors. Stockholders’ Equity Section of the balance sheet reflecting owners’ claims, increased by issuing common stock. Debit Accounting entry that increases assets such as cash when shares are issued. Credit Accounting entry that increases equity accounts, such as common stock, when shares are issued. Per Share Amount Price assigned to each share in a stock issuance, used to determine total cash received. Balance Sheet Financial statement where stockholders’ equity and common stock accounts are reported after stock issuance. Asset Resource owned by a company, such as cash, increased by proceeds from issuing stock.
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