Stock Rights Flashcards
1
Q
Stock Rights
A
Option to purchase a certain number of shares at a specified time period. No entry is made when issued.
2
Q
JE
A
Debit: Cash
Credit: Common stock, APIC
3
Q
Stock Rights issued instead of paying cash for an expense.
A
Issuance: debit expense. credit stock rights outstanding at market price -exercise price x number of shares.
Exercised: Debit cash, Credit common stock and APIC
