Asked by Juanita Soriano on Jun 08, 2024
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If paid-in capital in excess of par/preferred stock is $30,000, preferred stock is $200,000, paid-in capital in excess of par/common stock is $20,000, common stock is $525,000, and retained earnings is $105,000
(deficit), total stockholders' equity is $880,000.
Paid-in Capital
Refers to the funds raised by a company through the issuance of shares. This capital is provided by shareholders in exchange for equity in the company.
Preferred Stock
Preferred stock is a type of stock that grants holders certain priorities over common stock, including dividends and asset liquidation, often without voting rights.
Common Stock
A type of equity security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.
- Acquire knowledge on how to handle and report transactions related to shares, especially issuance at a higher value than face value and treasury stock operations.
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Learning Objectives
- Acquire knowledge on how to handle and report transactions related to shares, especially issuance at a higher value than face value and treasury stock operations.
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