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Question 7IFRS

Expert-verified
Intermediate Accounting (Kieso)
Found in: Page 825

Short Answer

Kaymer Corporation issued 300 shares of $10 par value ordinary shares for $4,500. Prepare Kaymer’s journal entry.

The total value of share capital – ordinary is $3,000.

See the step by step solution

Step by Step Solution

Meaning of Ordinary Shares

Ordinary shares are the form of stock issued by a corporation and reflect a portion of the company's ownership. They're also known as common stock because they show how much a shareholder holds the stake in the company.

Preparing Journal Entries

Date

Particular

Debit ($)

Credit ($)

Cash

4,500

Share Capital-ordinary

3,000

Share Premium-Ordinary

1,500

Working Notes:

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