What account is the total amount of cash and other assets received by a corporation from shareholders in exchange for common shares included in?

Contributed capital
Contributed capital, also known as paid-in capital, is the cash and other assets that shareholders have given a company in exchange for stock.

Which type of stock has the right to receive prior periods unpaid dividends before any dividend is paid to common stockholders?

Cumulative preferred stock gives its owners a right to be paid both the current and all prior periods’ unpaid dividends before any dividend is paid to common stockholders.

When a corporation has only one class of stock the stock is called?

When a corporation has only one class of stock, it is identified as common stock.

What are retained earnings quizlet?

Retained earnings. Cumulative amount of net income over the life of the corporation minus the cumulative amount of dividends paid out to shareholders.

What is the total amount of cash and other assets received by a corporation?

The total amount of cash and other assets received by a corporation from its stockholders in exchange for its stock is: Authorized stock. The number of shares that a corporation’s charter allows it to sell is referred to as: A credit to Common Stock for $14,000.

What is the account that shows the difference between the stock’s par value and what new stockholders paid when they bought newly issued shares?

A share premium account shows up in the shareholders’ equity portion of the balance sheet. The share premium account represents the difference between the par value of the shares issued and the subscription or issue price.

Does dividend appear on balance sheet?

There is no separate balance sheet account for dividends after they are paid. However, after the dividend declaration but before actual payment, the company records a liability to shareholders in the dividends payable account.

What is true of a corporation?

A corporation is a legal entity that is separate and distinct from its owners. 1 Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. Some refer to it as a “legal person.”

Where do retained earnings come from quizlet?

common stock results when the company sells new shares of stock; retained earnings is the net income retained in the corporation. is to provide financial information about the cash receipts and cash payments of a business for a specific period of time.

What increases retained earnings quizlet?

Retained earnings increases when the company has net income. You just studied 35 terms!

How much common stock does a company have?

A company has 1,000 shares of $100 par value preferred stock. It also has 25,000 shares of common stock outstanding, and its total stockholders’ equity equals $500,000. This implies its book value per common share is:

How are shares of common stock recorded in ACCT 2301?

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include: A credit to Paid-in Capital in Excess of Par Value, Common Stock for $72,000.

When did ACCT sell its common stock for cash?

Jan. 10 Sold 96,000 shares of common stock for $8 cash per share. Jan. 15 Exchanged 10,000 shares of common stock for equipment with a market value of $80,000. Feb. 1 Exchanged 500 shares of common stock for $2,500 of legal services incurred during the company’s organization.

How much does ch 11 ACCT dividend per year?

The amount of the potential dividend is $7 per year per preferred share. Preferred shareholders are entitled to 7% of the annual income. The market price per share will approximate $100 per share. Only 7% of the total paid-in capital can be preferred stock. The amount of the potential dividend is $7 per year per preferred share.

What does additional paid-in capital from common stock mean?

Additional paid-in capital from common stock consists of the excess of the proceeds received from the issuance of the stock over the stock’s par value. When a company has more than one class of stock, it usually keeps a separate additional paid-in capital account for each class.

How many shares of common stock are issued?

The Common Stock account increases with a credit for the stated value of the 8,000 shares issued: 8,000 × ?1.50, or ?12,000.

What makes up common stock on the balance sheet?

Two common accounts in the equity section of the balance sheet are used when issuing stock—Common Stock and Additional Paid-in Capital from Common Stock. Common Stock consists of the par value of all shares of common stock issued.

What is the general rule for stock issuance?

The general rule is to recognize the assets received in exchange for stock at the asset’s fair market value. The company plans to issue most of the shares in exchange for cash, and other shares in exchange for kitchen equipment provided to the corporation by one of the new investors.