Asked by
Jinsey Dowling
on Oct 15, 2024
Verified
When no-par stock is not assigned a stated value,the total amount received is recorded in the Common Stock account.
No-Par Stock
Shares issued without a specified face value, allowing companies flexibility in setting share prices and accounting for equity.
Stated Value
A value assigned to a company's shares that does not have a par value; often used in accounting for preferred stock.
Common Stock Account
An equity account that represents the ownership interest of the shareholders in a company.
- Gain an understanding of how stocks are issued and the valuation of non-cash assets provided in exchange for equity.
Verified Answer
EH
Learning Objectives
- Gain an understanding of how stocks are issued and the valuation of non-cash assets provided in exchange for equity.