Common Stock

Question 1

Fundamentals

Answer 1

SE, BS, Cr

Question 2

No par value common stock journal entry

Answer 2

Dr Cash

Cr Common Stock

Question 3

Cost and Equity Methods of Accting for LT Stock Inv

Answer 3

Aquisition: Cost method: +Stock inv, -Cash. Equity Method: +Stock inv, -Cash

Investee Reports Earnings: Equity Method only: +Stock inv, -Investment Revenue

Investee Pays Divs: Cost Method: +Cash, - Dividend Revenue. Equity Method: +Cash, -Stock Investments