Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Issued Shares For Cash Journal Entry In San Jose
State:
Multi-State
City:
San Jose
Control #:
US-0034-CR
Format:
Word;
Rich Text
Instant download
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FAQ
The number of issued shares is recorded on a company's balance sheet as capital stock or owners' equity, while the shares outstanding (issued shares minus any shares in the treasury) are listed on the company's quarterly filings with the Securities and Exchange Commission.
In these cases, the shares should be recorded at the fair value of the asset acquired or service received. Note that this treatment is different than the treatment of non-monetary exchanges of assets, where the fair value of the asset given up is normally used as the transaction amount.
Share issue costs are debited to equity whereas listing expenses are charged to the P&L. Therefore, it becomes important to allocate the total costs incurred in an IPO to share issue costs and other than share issue costs, i.e., listing expenses.