Asked by Anh Thy Nguy?n Ng?c on Jul 24, 2024
Verified
Common Stock Subscribed is:
A) shown as an equity account below Issued Common Stock.
B) a contra-asset account.
C) a receivables account.
D) shown on the income statement as a revenue.
Common Stock Subscribed
Common stock subscribed refers to shares that investors have committed to purchase but have not yet been issued by the company.
- Log entries involving stock subscriptions and the accumulation of their payments.
Verified Answer
RS
Rylie SkahillJul 26, 2024
Final Answer :
A
Explanation :
Common Stock Subscribed is shown as an equity account below Issued Common Stock on the balance sheet. It represents a commitment by investors to purchase shares of common stock, indicating that the stock has been subscribed to but not yet issued.
Learning Objectives
- Log entries involving stock subscriptions and the accumulation of their payments.
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