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Shares are issued so that the funds generated can be used by the company as capital. The funds are normally invested in more machinery or in expansion opportunities.
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∙ 9y ago
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What is the cost related to issuing new stock called?
The cost of issuing new stock is called "Share Issue Cost" or SIC. These costs are treated as an expense on the balance sheet.
What are the advantages of issuing of share?
Raising of capital. Reasons for wanting to raise capital is another topic, though.
What is the porpose of a company issuing stock?
Main purpose for issuing more stock is to get more cash to run the business and to invest in good opportunities or to fulfil the working capital requirements.
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
Sources of business finance?
bank over draft that is short and long term, sub contracting, debentures, issuing share, mortgage, leasing,
What are share application monies?
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 is the purpose of the company issuing stocks?
To raise money that can be used to grow the company.
What is the cost related to issuing new stock called?
The cost of issuing new stock is called "Share Issue Cost" or SIC. These costs are treated as an expense on the balance sheet.
Transaction for issuing shares in exchange for assets?
[Debit] Assets account [Credit] Share capital account
What are the advantages of issuing of share?
Raising of capital. Reasons for wanting to raise capital is another topic, though.
What is the porpose of a company issuing stock?
Main purpose for issuing more stock is to get more cash to run the business and to invest in good opportunities or to fulfil the working capital requirements.
What is the purpose of issuing a bond?
Communities issue bonds to build roads, schools, and public works.
Which of the following is not an advantage of issuing bonds instead of common stock?
Earnings per share on common stock are always lower.
Issuing executive orders is generally considered to fall under what constitutional duty?
Issuing of executive orders is an implied power of the President. The purpose of an executive order is to help governmental offices in performance of their duties.
How do i Jounalize the issuing of 14500 shares if 30 par common stock at 48 for receiving cash?
Debit Cash / bank 696000 Credit Share capital 435000 Credit Share premium261000
Journal entry for Issuing Par Value Common Stock to another company?
[Debit] Cash / bank [Credit] share capital
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