Common Stock $30,000 and Paid-in Capital in Excess of Par Value $12,000. Common Stock will be credited for $25,000. Cash will be debited for $210,000. Tomlinson Packaging Corporation began business in 2014 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, Hitech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year: April 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $35 per share. June 1 Declared a cash dividend of 60 cents per share. For example, if company XYZ issues 1,000 shares of stock with a par value of $50, then the minimum amount of equity that should be generated by the sale of those shares is $50,000. Example: The Northern company issued 100,000 shares of its $1 par value common stock and 25,000 shares of its $100 par value preferred stock. Make journal entries to record these transactions in the books of Northern company if the shares are issued: The corporation’s charter determines the par value printed on the stock certificates issued. Par value may be any amount—1 cent, 10 cents, 16 cents, $ 1, $5, or $100. Low par values of $10 or less are common in our economy. Par value gives no clue as to the stock’s market value. The common stock balance is calculated as the nominal or par value of the common stock multiplied by the number of common stock shares outstanding. and its stock has a par value of $1, it may common stock outstanding 1. Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013.
Aria's, Inc. has 1,000 shares of 5%, $100 par value cumulative preferred stock and 10,000 shares of $1 par value common stock outstanding. The company has not paid dividends in two years. In its third year, it paid the common shareholders a $2 per-share dividend, plus the amount owed to preferred shareholders. Common Stock $30,000 and Paid-in Capital in Excess of Par Value $12,000. Common Stock will be credited for $25,000. Cash will be debited for $210,000. Tomlinson Packaging Corporation began business in 2014 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%,
common stock outstanding 1. Aim, Inc., has 10,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2013. There were no dividends declared in 2012. The board of directors declares and pays a $120,000 dividend in 2013. Wiggins Corporation has 10,000,000 shares of $1 par value common stock outstanding. This stock was originally issued at $7 per share. The company also has 1,000,000 shares of $50, 4%, cumulative preferred stock outstanding.
On January 1, Year 2, Zook Company had 26,000 shares of $1 par common stock outstanding. During October, Year 2, the company’s board of directors declared and distributed a 1% common stock dividend when the market value of its common stock was $56 per share. Accounting for common stock issuance. Let s assume that Brilliant Company (a fictitious entity) issues 100,000 shares of common stock for $10 per share: the proceeds from the issuance of common stock are $1,000,000. In other words, in any scenario the company will debit the Cash account for $1,000,000. Aria's, Inc. has 1,000 shares of 5%, $100 par value cumulative preferred stock and 10,000 shares of $1 par value common stock outstanding. The company has not paid dividends in two years. In its third year, it paid the common shareholders a $2 per-share dividend, plus the amount owed to preferred shareholders. Common Stock $30,000 and Paid-in Capital in Excess of Par Value $12,000. Common Stock will be credited for $25,000. Cash will be debited for $210,000. Tomlinson Packaging Corporation began business in 2014 by issuing 30,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, Hitech Manufacturing Company has 1,000,000 shares of $1 par value capital stock outstanding on January 1. The following equity transaction occurred during the current year: April 30 Distributed additional shares of capital stock in a 2-for-1 stock split. Market price of stock was $35 per share. June 1 Declared a cash dividend of 60 cents per share. For example, if company XYZ issues 1,000 shares of stock with a par value of $50, then the minimum amount of equity that should be generated by the sale of those shares is $50,000.
Blowing Rock Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 30,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a $45,000 dividend in 2016 and in 2017.