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    mark13's Avatar
    mark13 Posts: 1, Reputation: 1
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    #1

    Feb 12, 2006, 07:32 PM
    Issuing of shares
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Feb 12, 2006, 08:08 PM
    YES

    Dr. Cash
    Cr. Common Shares
    ZH7's Avatar
    ZH7 Posts: 1, Reputation: 1
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    #3

    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?
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