Is contributed capital a non-current asset or a current asset, and is it a debit or credit?
The account Contributed Capital is part of stockholders’ equity and it will have a credit balance. Contributed capital is also referred to as paid-in capital.
When a corporation issues shares of its stock for cash, the corporation’s current asset Cash will increase with the debit part of the entry, and the account Contributed Capital will increase with the credit part of the entry. If the corporation then uses some of its cash to purchase equipment, its current asset Cash will decrease and its non-current asset Equipment will increase.
If a corporation receives equipment in exchange for newly issued shares of stock, the non-current asset Equipment will increase and Contributed Capital will increase.
The effects of double entry accounting are illustrated under the topic Accounting Equation.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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Is the bad debt recovered a incme or expenses for a company?
Is the bad debt recovered a income or expenses for a company?
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A company receives a subletting part of its opening stock.
Rent, receivable quarterly in advance, is received as follows ;
DATE OF RECEPIT PERIOD COVERED $
1 OCTOBER 2001 3 months to 31 December 2001 7500
30 December 2001 31 march 2002 7500
4 April 2002 30 June 2002 9000
1 July 2002 30 September 2002 9000
1 October 2002 31 December 2002 9000
What figure, based on these receipts, should be appear in the company’s financial statements for the end of the year ended 30 November 2002 ?
i want more explaination on non current assets. thanks
is really the opening cash of the company and they turned in to shares if the company is own by two to three people is along term investments.
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Can I have drills with regards to the Philippine Accounting Standards?thanks.
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