Stock Issuance Flashcards
1
Q
How is True No Par Stock accounted for?
A
-Crediting all proceeds to Common Stock account, no APIC
2
Q
What’s the journal entry for stock subscriptions?
A
- Dr. Cash and Stock Subscriptions Receivable
- Cr. Common Stock Subscribed and Contributed Capital in Excess of Par
3
Q
When is Common Stock credited under a Subscription Basis contract?
A
-When final payment is made as this is when stock is issued
4
Q
Which FV should you use in recording a Stock Issuance in exchange for Nonmonetary asests?
A
- Whichever more clearly determinable
- If small stock issuance, typically stock
- If large stock issuance, typically asset
5
Q
How are stock issue costs treated?
A
-As reduction in proceeds from stock issuance
