Debt Credit
Cash 19,000 x 152,000 $ 2,888,000,000
Common Stock (19,000 x $ 2) $ 38,000
Paid Up Capital Exceeds the Value Set (19,000 x $ 5) $ 95,000
<h2>Further Explanation
</h2>
Shares are securities or books which are a sign of ownership or equity participation in a company.
Stocks usually take the form of a piece of paper as proof. Shares can be obtained from the company concerned directly or from previous parties through the stock exchange (stock market).
Book Value of Shares
The book value of shares is the value of shares according to the company's books. The book value of the shares is obtained from the value of the remaining assets after deducting the company's liability if the shares are distributed. The book value shows the guarantee or how big the function of shares owned by investors. Some values related to book values include:
- Nominal value is the value determined by the company for its shares.
- Agio share is the difference in price from an investor's payment to the company minus the nominal price of the stock.
- Capital value is the total amount paid by shareholders to the company, in the form of nominal value + share capital.
- Retained earnings are profits not distributed to shareholders which are used for investment as a source of internal company funds.
Cash Flow for Shareholders:
If you buy shares, you can get cash in two ways, namely:
- The company pays dividends
- We sell shares (to other investors in the capital market or to issuers/companies that sell their shares to the public)
- Like bonds, stock prices are the present value of expected cash flows.
Learn More
Common Stock brainly.com/question/13513598
Values of Shares brainly.com/question/13024270
Detail
Class: College
Subject: Business
Keyword: Stock, Journal, Debt-Credit
