C249 preassessment - Study guides, Class notes & Summaries

What are two descriptions of preemptive Stock Rights - 1. A privilege often referred to as a warrant 2. A means of protecting stockholders from involuntary dilution of ownership A corporation issues 1,000 shares of $10 par value common stock for $12,000. Paid Issuance costs are $500. How should the issuance be accounted for? -Debit Cash $12,000 Credit Common Stock $10,000 (1,000 x $10) Credit Additional Paid-in Capital $2,000 Why would a corporation reacquire stock by using the cost metho...