The cost of issuing new stock is called "Share Issue Cost" or SIC. These costs are treated as an expense on the balance sheet.
banter
Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com
It increase liquidity.
Numerous including: 1. Ownership of the corporation evidenced by the share certificate, 2. Capitalization, i.e., issuing stock for capital, 3. Employee incentives, 4. Acquisition of other companies using equity, 5. Bonuses, 6. Stock warrants and options.
Share application monies are the cash received by an enterprise issuing shares by people who are interest to become share holders of that enterprise.
What are the advantages and disadvantages of shareblocks
the advantages are easy, go die !
The cost of issuing new stock is called "Share Issue Cost" or SIC. These costs are treated as an expense on the balance sheet.
[Debit] Assets account [Credit] Share capital account
banter
Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com
It increase liquidity.
Numerous including: 1. Ownership of the corporation evidenced by the share certificate, 2. Capitalization, i.e., issuing stock for capital, 3. Employee incentives, 4. Acquisition of other companies using equity, 5. Bonuses, 6. Stock warrants and options.
Numerous including: 1. Ownership of the corporation evidenced by the share certificate, 2. Capitalization, i.e., issuing stock for capital, 3. Employee incentives, 4. Acquisition of other companies using equity, 5. Bonuses, 6. Stock warrants and options.
Earnings per share on common stock are always lower.
Debit Cash / bank 696000 Credit Share capital 435000 Credit Share premium261000