Charger Authorized
Fundamental problem of accounting?
Vania Charger inc authorized 1,000 shares for a stated value of $ 1 per share. Vania sell 50 shares in his first offer of $ 10 per share. The journal entry includes the following entries answers: credit to paid-in capital in excess of the declared value of $ 450, credit for common stock for $ 50, a debit to cash for $ 500 please explain answer.
Answer: The common stock is credited to the couple or value said of the issued shares (50 shares * $ 1 par value). Payment – in capital in excess of the declared value is accredited by the excess ($ 500 – $ 50).
