Treasury shares.
a. increasing equity
b. decreasing equity

Answers

  • Réponse publiée par: taekookislifeu

    Subject Economics

    The correct answer among the above listed choices is letter a. Recording issuance of common shares has an effect to increase equity.

    Common Shares

    -is a corporate equity ownership usually found under stockholders equity section of the balance sheet. They are also known as common stock, capital stock or ordinary shares.

    Issuing of Common Shares can be done by:

    Issuing common stock for cashIssuing common stock for noncash assets and services

    In either way of issuance of common shares, it has the same effect for increasing stockholders' equity.

    The entry of Issuance of Common Shares would be:

    Debit Cash or Noncash Assets/ Services (total value received)

    Credit Common Shares (par value x # of shares issued)

    Credit Paid-in Capital in Excess of Par Value (excess of par value of common shares x # of shares issued)

    For related topic about example of common stock problem solving

    Code: 11.11.3.8.

Connaissez-vous la bonne réponse?
Treasury shares. a. increasing equity b. decreasing equity...