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Issuing Common Stock for Assets or Services definitions

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  • Common Stock
    Equity account representing ownership shares issued by a corporation, recorded at par value when exchanged for assets or services.
  • Par Value
    Nominal value assigned per share of stock, used to allocate amounts in equity accounts during stock issuance.
  • Additional Paid-In Capital
    Equity account capturing the amount received from stock issuance above par value, often abbreviated as APIC.
  • Fair Market Value
    Current price at which an asset or service would change hands between willing parties, used for recording non-cash stock exchanges.
  • Asset Account
    Ledger category tracking resources owned by a company, such as buildings, increased when stock is issued for assets.
  • Legal Expense
    Cost category reflecting the value of legal services received, debited when stock is issued in exchange for such services.
  • Equity
    Residual interest in company assets after liabilities, increased by stock issuance and affected by expenses.
  • Journal Entry
    Formal accounting record documenting the exchange of stock for assets or services, showing debits and credits.
  • Building Account
    Specific asset account increased when a company receives a building in exchange for stock.
  • Shares
    Units of ownership in a corporation, issued to investors or service providers in exchange for value.
  • Book Value
    Historical cost of an asset minus accumulated depreciation, not used for recording stock-for-asset exchanges.
  • Accumulated Depreciation
    Total depreciation recorded against an asset, provided for information but not used in stock issuance entries.
  • Income Statement
    Financial report where expenses like legal services are recorded, impacting net income and equity.
  • Debit
    Accounting entry increasing assets or expenses, used for asset or expense accounts in stock-for-value transactions.
  • Credit
    Accounting entry increasing equity accounts, used for common stock and APIC when stock is issued for assets or services.