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Issuing Par Value Stock definitions Flashcards

Issuing Par Value Stock definitions
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  • Common Stock
    Equity account representing ownership in a company, credited with the par value of shares issued.
  • Par Value
    Nominal amount assigned to each share, typically low, used to allocate proceeds in equity accounts.
  • Additional Paid-In Capital
    Equity account for amounts received from stock issuance above par value, often abbreviated as APIC.
  • Selling Price
    Amount at which shares are sold to investors, can be stated per share or as a total for all shares.
  • Equity
    Ownership interest in a company, increased by proceeds from issuing common stock.
  • Journal Entry
    Accounting record showing debits and credits for transactions, such as stock issuance.
  • Cash
    Asset account debited for the total amount received from selling stock.
  • Shares
    Units of ownership in a corporation, each representing a portion of equity.
  • Credit Balance
    Normal balance for equity accounts like common stock and APIC, increased by stock issuance.
  • Debit
    Accounting entry that increases assets, such as cash received from stock sales.
  • Assets
    Resources owned by a company, increased by cash from issuing stock.
  • Liabilities
    Obligations of a company, unaffected directly by stock issuance but part of the accounting equation.
  • Accounting Equation
    Fundamental relationship: assets equal liabilities plus equity, maintained during stock issuance.
  • Paid-In Capital in Excess of Par
    Alternative term for APIC, representing amounts received above par value for issued shares.
  • Ownership
    Stake in a company acquired by purchasing common stock, reflected in equity accounts.