Question
How do you record common stock issued for cash above par?
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Answer
Debit Cash; credit Common Stock at par and APIC for the excess.
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Question
How does a stock split differ from a stock dividend?
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Answer
A split changes shares and par only; no journal entry is made.
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Question
What do liquidating dividends represent?
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Answer
A return of capital, not earnings.
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Question
How is the par-value method for treasury stock different from the cost method?
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Answer
It treats reacquisition like retirement and records Treasury Stock at par.
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