Asked by
Anshul Takshak
on Nov 13, 2024
Verified
When a corporation issues stock at a premium, it reports the premium as an Other income item on the income statement.
Stock Premium
The amount by which the selling price of a share exceeds its par value, also known as share premium.
Other Income
Revenues earned from activities that are not related to a company's primary business operations.
Income Statement
A financial statement that shows a company's revenues, expenses, and profit or loss over a specific time period.
- Understand the accounting treatment and reporting of stock transactions, including issuance at a premium and treasury stock transactions.
Verified Answer
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Learning Objectives
- Understand the accounting treatment and reporting of stock transactions, including issuance at a premium and treasury stock transactions.
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