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To download the PowerPoints slides and practice quizzes, visit: https://farhatlectures.pathwright.com/ Follow me on: Instagram: @farhatlectures Linkedin: https://www.linkedin.com/in/professor... Facebook: @accountinglectures Twitter:@farhatlectures Email: Mansour.farhat@gmail.com Explain how to account for the issuance of common, preferred, and treasury stock. Common Stock. When companies record the issuance of common stock for cash, they credit the par value of the shares to Common Stock. They record in a separate paid-in capital account the portion of the proceeds that is above or below par value. When no-par common stock has a stated value, the entries are similar to those for par value stock. When no-par stock does not have a stated value, companies credit the entire proceeds to Common Stock. Preferred Stock. Preferred stock has contractual provisions that give it priority over common stock in certain areas. Typically, preferred stockholders have preferences (1) to dividends and (2) to assets in liquidation. They usually do not have voting rights. My website: https://farhatlectures.com/ Facebook page: https://www.facebook.com/accountinglectures LinkedIn: https://goo.gl/Pp2ter Twitter: https://twitter.com/farhatlectures Email Contact: Mansour.farhat@gmail.com
