Class 1 common stock typically has more voting rights than Class 2 common stock. This means that shareholders with Class 1 stock have more influence over company decisions compared to Class 2 shareholders.
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Issuing Par Value Common Stock for Cash
(assume par value is $1) dr. Cash $1.00
cr. Common Stock $1.00
to record issuance of 1 share of $1 par common stock if sold for more than par value (Assuming $5) dr. Cash $5
cr. Common Stock $1
Paid-in Capital in excess of par $4
to record issuance of 1 share of common stock in excess of par.
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Cash Common Stock Paid in Capital
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Yes if there is a clause while issuing common stock that stock holder can convert the common stock to preffered stock.
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debit common stock of one type
credit common stock of other type
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Yes, credits increases the common stock because common stock has credit as a normal balance of account.
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declaration of a stock dividend
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Debit common stock
Credit redemption of common stock account
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Generally in the format of:
Cash (cash paid up front)
Common Stock Subscribed Receivable (remaining amount due)
Common Stock Subscribed (Temporary 'Legal Capital' Account)
Additional Paid In Capital - Common
When fully paid, post:
Cash (cash paid)
Common Stock Subscribed Receivable
Common Stock Subscribed
Common Stock
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#1) The stock market is very risky.
#2) Constant vigilance is required.
#3) There is usually a transaction fee for every transaction.
#4) Common stock is not as valuable as preferred stock.
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Debit common stock
Credit redemption of common stock account
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Someone who owns common stock is called a Shareholder.
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Common Stock is the most basic form of corporate ownership.
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declaration of a stock dividend
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Dividend on common stock has to be more than dividend on preferred stock because of higher risk involved in equity investments.
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Market value of common stock = 12000 / 200 = 60 per share
Preferred shares are different from common shares
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Yes Common stock is an equity of business and refundable by business at the time of liquidation of business.
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They are about same except, prefer get money before common
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Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
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Common stock dividends distributable is an equity account and it has a normal credit balance. It is added to capital stock on the balance sheet.
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Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
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Earnings per share on common stock are always lower.
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I have 18 shares of common stock in this company. What is the current value?
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[Debit] Cash /bank
[Credit] Common Stock
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debit Unissued Common Stock
credit Authorized Common Stock
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The common stock is called variable income securities because the rate of return of common stock is determined by market and hence the returns continuously changes with the market dynamics.
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Preferred stock and common stock are both types of ownership in a company, but they have some key differences. Preferred stockholders have priority over common stockholders when it comes to receiving dividends and assets in the event of liquidation. Preferred stock usually pays a fixed dividend, while common stock dividends can vary. Additionally, preferred stockholders typically do not have voting rights in the company, unlike common stockholders who usually do have voting rights.
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Dividends for preferred stockholders are often stated in advance and do not tend to fluctuate as much as those for common stock.
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The term common stock is a type of stock that allows shareholders dividends that vary dependent on the performance of a business. It is a type of corporate equity ownership.
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Preferred stock have preference over common stock it getting dividends. They are not guaranteed dividends but stand in line first to receive them. Also, in the event the corporations becomes insolvent, after all debts are paid preferred stock holder stand in line in front of common stock holders to get repaid.
There are disadvantages to preferred stock over common stock but you didn't ask that.
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You Have 1,000 shares of $30 par value preferred stock and 700 shares of common stock. The preferred stock pays an 8.2% guaranteed rate of return. The common stock dividend is 85 cents per share. What is the total dividend of the preferred plus common Stock?
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Common stock has a credit normal balance so with debit it reduces while with credit it increases.
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Value of each share of Mckesson common stock on September 28th 1981
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Equipment is not actually bought using common stock rather it is purchased from cash by issuing common stock so journal entry is :
[Debit] Equipment
[Credit] Cash / bank
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Common stocks--a type of stock that pays a variable dividend and gives the holder voting rights.
Preferred stocks--a type of stock that pays a fixed dividend and carries no voting rights.
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Preference share holders have preference over common stock holdres in dividend distribution as well as in terms of capital invested.
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common stock, preferred stock, and bonds
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