Cash is debited for $160, and Common Stock-$0.01 Par Value is credited for $160.
Cash account will be debited for the issue proceeds received which are 16000 x $0.01 = $160, and common stock will be credited with the par value of the common stock issued which is also 16000 x $0.01 = $160 since the shares were issued at par.
Common stock is a shape of corporate equity ownership, a type of security. The terms balloting percentage and regular share are also used frequently out of doors of the US. they are known as equity stocks or ordinary shares inside the uk and other Commonwealth geographical regions. This sort of share offers the stockholder the right to percentage within the income of the employer, and to vote on subjects of company coverage and the composition of the participants of the board of directors.
The proprietors of commonplace stock do now not very own any specific assets of the business enterprise, which belong to all the shareholders in common.
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