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mark13
Feb 12, 2006, 07:32 PM
If a new corporation was to sell shares, how exactly is this recorded in the books.

I would assume you would Dr. the cash account and maybe Cr. The stock account?

CaptainForest
Feb 12, 2006, 08:08 PM
YES

Dr. Cash
Cr. Common Shares

ZH7
Dec 1, 2013, 02:54 AM
 Issuing Shares A company with 200.000 ordinary shares of 1€ nominal value each wants to issue and sell
another 180.000 shares of nominal value 1€ for 1,80€ each.
The balance sheet looks like this:
Total Assets
300.000
Owners Equity Share Capital
200.000 25.000 75.000 300.000
Revenue Reserves Liabilities
Total Equity and Liabilities
a) Show the balance sheet after the shares have been issued
b) Comment on whether the price asked per share (1,80€) would attract new shareholders
c) Which price per share would be considered ‘fair’ from both the perspectives of a potential new shareholder and the old shareholders? Give arguments
how to do this task?