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
What decreases a partner's capital account?
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Answer
Losses and withdrawals.
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Question
What increases a partner's capital account?
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Answer
Contributions and the partner's share of income.
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Question
When stock is issued for property or services, what determines the measurement basis?
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Answer
Fair value of the consideration received or the stock issued, whichever is clearer.
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