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What happens when a company issues common stock for 40000 and uses 30000 of the cash to purchase a truck?
Wiki User
∙ 10y ago
When a company issues a stock, it is first assigned a par value, it's an arbitrary value, commonly $1. When the stock is sold, assuming that it sells for greater than par, the cash is entered into two seperate line items, Common stock and Paid in capital in excess of par; this goes straight into Stockholder Equity. When the company buys the truck, (and this will sound backwards) they credit their cash account and create an account in their ledger for the truck and debit it for the amount they paid for the truck; accounting ledgers have two volumns that have to balance, Debit and Credit. They generally will create a depreciation account for the truck as well and accumulate the depreciation on the truck until such time as the value of the truck on th books equals zero or they sell the truck. The tricky part comes if they sell the truck for more than they have left on the books for its value, when that happens they have to back and refile taxes for all the years they claimed the deprecition on the truck.
Wiki User
∙ 10y ago
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What explains what happens when a company or government issues bonds?
The company or government goes into debt to those who purchase the bonds.
What best explains what happens when company or government issues bonds?
the company or government goes into debt to those who purchase the bonds
What best explains what happens when a company or government issues bonds?
The company or government goes into debt to those who purchase the bonds.
What happens when a company issues bonds?
The company or government goes into debt to those who purchase the bonds. You're f***ing welcome.
What happens if a company issues stock that has not yet been authorized?
They fail.
How long after establishment a company can issue primary share?
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Yes Send Map does offer purchase order software. They are a third party logistics company that is able to tackle your companies shipping issues. The software is designed to be user friendly and efficient.
Examples of moral issues in manufacturinga product?
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