Ask Experts Questions for FREE Help !
Ask
    felines27's Avatar
    felines27 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 14, 2008, 06:08 PM
    Owner's equity
    Why is it important to keep paid-in capital separate from earned capital?
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #2

    Jan 19, 2008, 12:01 AM
    Quote Originally Posted by felines27
    Why is it important to keep paid-in capital separate from earned capital?
    Paid in cap, reflects someone paying for stock in the company over par, remainder of which goes to paid in cap. In additon, there are sonme transactions between shareholde and company that can produce A
    delite's Avatar
    delite Posts: 202, Reputation: 3
    Full Member
    		  
    #3

    Jan 19, 2008, 12:04 AM
    paid in cap represents someone paying in excess of par/book value. Transactions between shareholders and the company regarding redemptions can also provide for paid in capital results.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Owner's equity [ 1 Answers ]

The Apricot Company in 2001 had notes payable of $1,200, accounts payable of $2,400, and long-term debt of $3,000. The corresponding entries for 2002 are $1,600, $2,000, and $2,800. For assets, Apricot had in 2001 $800 in cash, $400 in marketable securities, and $1,800 of inventory. The...

Owner's Contributions [ 1 Answers ]

I am starting my own Bookkeeping and Consulting business. Is it best to post my start up expenses to owner contributions?

Owner's equity [ 1 Answers ]

I have to do t-accounts, trial balance,income statement, owner's equity and a balance sheet on an example the teacher gave us. I completed the t-accounts and the trial balance. They are correct, but, I am stubled on the income statement and the owner's equity. I don't know how to figure if it was a...

Owner's Equity [ 2 Answers ]

Im having a problem. I have an account set up as contributions, drawings, and personal use of home accounts. I have a retained earnings and current earnings and total equity account. My question.I made some errors and have corrected them. I put entries in the retained earnings that shouldn't have...

View more questions Search