Ask Question
BusinessBusiness
30 December, 14:20

What is the account that shows the difference between the stock's par value and what new stockholders paid when they bought newly issued shares?

+3
Answers (1)
  1. 30 December, 15:14
    0
    Share Premium Account that shows the difference between the stock's par value and what new stockholders paid when they bought newly issued shares.

    Explanation:

    Share premium has been the difference between the nominal value of shares of an undertaking and the total number that the undertaking receives for shares issued recently.

    For example, Company ABC has released 300 shareholdings.

    The stock is given a par value or is worth $10, but $15 is paid out per share.

    So the company's debt is $4,500. The share capital is just $3,000 of that $4,500. The leftover $1,500 is an equity premium, which is a reward for partial company ownership for funds raised by shareholders. In the equity premium account, $1,500 is reported on the balance sheet for the corporation.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is the account that shows the difference between the stock's par value and what new stockholders paid when they bought newly issued ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Larson, an unemployed carpenter, filed for voluntary bankruptcy on August 14, Year 3. Larson's liabilities are listed below.
Answers (2)
The role making phase of development is a two-way exchange between the boss and the subordinate and is characterized by negotiation. a. true. b. false.
Answers (1)
In the past year, a total of 300 deaths due to pregnancy conditions were reported as well as 3,500,000 live births. calculate the maternal mortality rate for the year.
Answers (1)
Jordan Company is considering the purchase of a machine with the following dа ta: Initial cost $150,000 One-time training cost 12,000 Annual maintenance costs 15,000 Annual cost savings 75,000 Salvage value 20,000 The cash payback period is A)
Answers (1)
What are the historically used 4 Ps of marketing?
Answers (1)
New Questions in Business
Whitman Antique Cars Inc. has the following data, and it follows the residual dividend model. Some Whitman family members would like more dividends, and they also think that the firm's capital budget includes too many projects whose NPVs are close
Answers (1)
When bauer smith opened a men's shoe store, he decided to carry a full line of shoes in the larger, hard-to-find sizes.
Answers (1)
Amendments involving changes to irb approved protocols do not need prior irb approval if: the investigator keeps careful records of all changes and includes them in the final report. They are eligible for review using expedited procedures.
Answers (1)
The Inventory account is used in each of the following except: the entry to record goods purchased on account. the return of goods purchased. payment of freight on goods sold. payment within the discount period.
Answers (1)
What are the advantages of having the federal reserve oversee the regulation of the banking system?
Answers (1)
Home » Business » What is the account that shows the difference between the stock's par value and what new stockholders paid when they bought newly issued shares?
Sign Up Forgot Password?