say the stockholder exchanges $10,000. does it get documented as all debit, or does it get split in both credit and debit? thanks for any help!
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
if a stockholder exchanges cash for common stock, how is it recorded on a financial document?
Leave a comment
cash is an asset account. so an increase of cash = debit.
If a stockholder pays cash and receives common stock in return the journal entry would be a debit to common stock and a credit to cash. Both are assets. On the balance sheet it would show an increase in common stock and a decrease in cash. The net change is zero..