BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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common stock; additional paid-in capital; and property, plant, and equipment, net
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cash; and property, plant, and equipment, net
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common stock; additional paid-in capital; and retained earnings
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common stock; additional paid-in capital; and cash
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Detailed explanation-1: -The columns in the statement of stockholders’ equity reflect the major account titles within the stockholders’ equity section: the types of stock issued and outstanding, paid-in capital in excess of par (or stated) value, retained earnings, and treasury stock.
Detailed explanation-2: -Key Takeaways Four components that are included in the shareholders’ equity calculation are outstanding shares, additional paid-in capital, retained earnings, and treasury stock.
Detailed explanation-3: -The account used for the proceeds greater than par value is called “Additional Paid-In-Capital". The common stock account is credited for the amount of par value received.
Detailed explanation-4: -When stock is issued by a corporation, two accounts must be adjusted on your business’s balance sheet to record the transactions. The cash account and the stockholder’s account are both impacted by stock issues. Money you receive from issuing stock increases the equity of the company’s stockholders.