PDA

View Full Version : State Authorization of Stock


CB84
Mar 29, 2008, 06:26 PM
I am wondering how a journal entry is made when a state authorizes a company to sell common stock. Does the Dr. go to Common Stock and the Cr. To Stockholder's Equity?

CaptainForest
Mar 29, 2008, 09:19 PM
Being authorized to sell stock would require no Journal Entry.

Selling the stock would require such an entry.

CB84
Mar 30, 2008, 08:21 AM
Thank you so much!

CaptainForest
Mar 30, 2008, 06:13 PM
You're welcome