Asked by Carol Jasso on Jul 26, 2024
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Identify the account types used in recording transactions related to a stock subscription plan: Subscriptions Receivable-Common Stock; Common Stock Subscribed, Paid-In Capital in Excess of Par Value-Common, Common Stock, Cash. Also list the financial statement where the accounts are found.
Subscriptions Receivable-Common Stock
An account representing amounts due from subscribers who have agreed to buy shares of common stock, not yet paid for.
Paid-In Capital in Excess
Funds received from investors above the par value of the shares issued, also known as additional paid-in capital.
- Determine the accounts implicated in the issuance and subscription of stocks.
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Learning Objectives
- Determine the accounts implicated in the issuance and subscription of stocks.