Issuing Par Value Stock definitions Flashcards
Issuing Par Value Stock definitions
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Common Stock Equity account representing ownership in a company, credited with the par value of shares issued. Par Value Nominal amount assigned to each share, typically low, used to allocate proceeds in equity accounts. Additional Paid-In Capital Equity account for amounts received from stock issuance above par value, often abbreviated as APIC. Selling Price Amount at which shares are sold to investors, can be stated per share or as a total for all shares. Equity Ownership interest in a company, increased by proceeds from issuing common stock. Journal Entry Accounting record showing debits and credits for transactions, such as stock issuance. Cash Asset account debited for the total amount received from selling stock. Shares Units of ownership in a corporation, each representing a portion of equity. Credit Balance Normal balance for equity accounts like common stock and APIC, increased by stock issuance. Debit Accounting entry that increases assets, such as cash received from stock sales. Assets Resources owned by a company, increased by cash from issuing stock. Liabilities Obligations of a company, unaffected directly by stock issuance but part of the accounting equation. Accounting Equation Fundamental relationship: assets equal liabilities plus equity, maintained during stock issuance. Paid-In Capital in Excess of Par Alternative term for APIC, representing amounts received above par value for issued shares. Ownership Stake in a company acquired by purchasing common stock, reflected in equity accounts.
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