issuing common stock and prefered stock

Question 1

1

rights for owner of common stock

Answer 1

1- votting for board members
2- sharing of profits & dividens of comp.
3- keeping same percentage of ownership if new stock issued
4- sharing assets in liquidation in proportion to their holding

Question 2

stock appreciation?

Answer 2

value of stock increase above the price orginally paid

Question 3

Preferred stock

Answer 3

pays regular dividends. also less risky

Question 4

par value?

Answer 4

Minimum amount of money to sell stock
Its not a market value

Question 5

additional paid in capital

Answer 5

Excess in par value

Question 6

sale of stock journal entry

Answer 6

Debit Cash
Credit Common stock/ preferred stock
Credit APIC common stock/ APIC preferred stock