In addition, they can be sold at face value or above face value.

In addition, they can be sold at face value or above face value.

For example, if a company issued (sold) 10,000 ordinary shares with a par value of $ 5 each. The sale took place at face value. Then:

Dt “Cash” 50,000, Kt “Authorized capital (common shares)” 50,000.

If the same shares were sold for $ 8 each, the following entry is made:

Dt “Cash” (10,000 shares * $ 8) 80,000, Kt “Authorized capital (ordinary shares)” (10,000 shares * $ 5) 50,000, Kt “Additional capital (ordinary shares)” 30,000.

The same promotions were sold for $ 4 each:

Dt “Cash” 40,000, Kt “Authorized capital (ordinary shares)” 50,000, Dt “Additional capital” 10,000 (reduction of additional capital).

That is, if the shares are sold at a price lower than the nominal value, the authorized capital includes the nominal value of the shares, and the difference is reflected in Dt “additional capital” if this account has a credit balance.

If this account does not have a credit balance, the amount below the nominal value of shares is debited to the account “Retained earnings” (in Dt of this account).

In most US states, for example, the sale of common stock below par value is prohibited.

Accounting for the issue (sale) of ordinary shares without par value

If the non-nominal shares have a declared value (set by the Board of Directors), the amount of income from the sale within the declared value is credited to the authorized capital. Income received above the declared value is recorded as topics for narrative essay additional capital (ie reflected in the accounting is the same as nominal shares).

For example, the company issued 10,000 shares without par value. The management announced a price of $ 6 per share. In fact, $ 9 per share was sold. This is displayed by the following entry:

Dt “Cash” 90,000, Kt “Authorized capital (ordinary shares)” 60,000, Kt “Additional capital” 30,000.

If the declared value of non-nominal shares has not been established, then the entire amount from the sale of shares is credited to the authorized capital:

Dt “Cash” 90,000, Kt “Authorized capital (ordinary shares)” 90,000.

Accounting for the issue (sale) of preferred shares

Like ordinary shares, preferred shares can be issued by a corporation for cash or for non-monetary assets. In addition, they can be sold at face value or above face value.

Preference shares can be both nominal and non-nominal. In accounting, the issue (sale) of preferred shares is reflected in the same way as ordinary shares.

For example, if a company issued (sold) 10,000 preferred shares with a par value of $ 5 each. The sale took place at face value. Then:

Dt “Cash” 50,000, Kt “Authorized capital (preferred shares)” 50,000.

If the corporation issued 20,000 preferred shares with a par value of $ 10 each, the sale price was $ 14 each:

Dt “Cash” (20000 * 14 dollars) 280000, Kt “Authorized capital (preferred shares)” (20000 * 10 dollars) 200000, Kt “Additional capital (preferred shares)” 80,000.

It should be noted that the accounts for the accounting of the Authorized capital, as well as additional capital from ordinary and preferred shares are kept separately.

In the balance sheet as part of the share capital, preferred shares are shown first. This is due to their advantages in the payment of dividends and in the distribution of property in the liquidation of the corporation.

07.03.2011

The concept of spare parts and their accounting. Abstract

A special place in the ATP stocks is occupied by spare parts, ie those parts, assemblies, units used for repairs, replacement of worn parts of machines, vehicles and other types of equipment during their repairs, as well as car tires in stock and turnover

Spare parts are individual components, assemblies and parts of vehicles designed to replace worn-out parts of fixed assets.

Car engines, gearboxes and other components, car tires in stock and in circulation, units and parts intended for replacement during repairs of those components, units and parts that are part of the car, are not independent inventory items, are accounted for 20 “Inventories “of sub-account 207” Spare parts “.

This sub-account is intended for accounting of purchased or manufactured spare parts, finished parts, assemblies, units used for repairs, replacement of worn parts of machines, equipment, vehicles, tools, as well as car tires in stock and turnover.

On the same sub-account the accounting of the exchange fund full of complete cars, the equipment, engines, knots, the units created in repair divisions of the enterprises, at the repair enterprises is carried out.

The debit of the sub-account reflects the balance and receipts of spare parts, the credit – spending, sale and other disposal.

The vertical structure of sub-account 207 “Spare parts” by sections of their analytical accounting can be represented by the scheme.

Car tires, installed on wheels and in stock at the car, are included in its inventory value and are included in fixed assets. Car tires, batteries and spare parts in stock cannot perform any function or work on their own, so they are not included in fixed assets (except when they come with a new car) regardless of the purchase price. …

Spare parts that are new and used, but suitable for use without repair, are accounted for at their original cost, repaired – at 50% of the cost and those in need of repair – at the price of their possible sale, but not more than 10% of them initial cost.

All spare parts received from the supplier or from other sources are posted to the warehouse. When transferred to repair shops, sites, they are deducted from the cost of repairs as they are used.

The movement of spare parts transferred for repair and restoration is carried out without reflection in accounting. Thus the materially responsible person of division-sender writes out the consignment note in two copies. The first copy after the delivery of parts for repair remains with the financially responsible person and after receiving spare parts for repair is transferred to the accounting department.

Analytical accounting of spare parts is conducted by places of storage and homogeneous groups (mechanical group, electrical group, etc.). Analytical accounting of machines, equipment, engines, units and units of the exchange fund is conducted by groups: serviceable (new and refurbished); to be restored (in stock); under repair.

During operation, the components and parts included in the car are worn out and must be replaced or repaired. Units, including engines, removed from cars during repairs, but suitable after their repair for further operation, are reflected in account 207 “Spare parts” at the cost of their possible implementation.

The cost of repairing these spare parts is attributed to increase their cost, and after installing them on the car being repaired – to the cost of repair.

Spare parts removed from cars, not suitable for further use (usually scrap), are posted to sub-account 209 “Other materials” at the price of possible use (at the price of scrap).

Write-off of spare parts for vehicle repairs is carried out only on the basis of the act of acceptance-delivery of repaired, reconstructed and modernized objects and are reflected by posting: debit account 15 “Capital investments” credit sub-account 207 “Spare parts “.

Control over the write-off of spare parts is carried out on the basis of documentation maintained by the repair services of the shops in accordance with the provisions on planned and preventive repairs.

Issuance of spare parts and units for maintenance and overhaul of cars is carried out in exchange for removed from the cars. In the warehouse of the enterprise suitable spare parts that were in use, in contrast to new ones, are marked with colored paint.

Unusable spare parts, accepted in exchange for those issued from the warehouse, are stored separately and at the end of the month are accounted for as scrap metal.

The reflection of operations on the movement of spare parts in the accounts is given below:

. Op.

The content of the business transaction

Corresponding accounts

 

 

Dt

Kt

one.

Parts removed from the car are posted

207

23,15,92

2.

Units removed from the car (engines, transmissions, front and rear axles, etc.): – suitable for use in need of repair

207

15

 

– unusable (by weight and price of scrap metal)

209

15

3.

Units from written-off cars were accounted for

201,207 th most common

746

four.

New units for their installation on the car were issued from the warehouse

15

207

five.

The reversible unit removed from the car, which is subject to repair, was posted to the warehouse

207

746

6.

Returned spare parts to the warehouse after repair

207

15

 

Separate warehouses for spare parts that have been removed from cars can be created at the ATP. The cost of such spare parts is determined by the price of their possible use or sale.

New spare parts are issued from the warehouse at the request of the garage or repair shop in exchange for worn, in case of loss – under the act of loss, certified by the signature of the head, chief of the column or chief engineer.

06.03.2011

Accounting for repurchase of own shares. Abstract

Motives and accounting for repurchase of own shares, the order of reflection of repurchased shares in the balance sheet. Accounting for repurchase of own shares and their subsequent sale. Accounting for repurchase of own shares and their destruction. Accounting for the conversion of preferred shares of the company into simple

Motives and accounting for repurchase of own shares, the order of reflection of repurchased shares in the balance sheet