Financial Accounting - Chapter 12

The primary purpose of a stock split is to

If common stock is issued for an amount greater than par value, the excess should be credited to

Under the corporate form of business organization,

One of the main disadvantages of the corporate form is the

Retained Earnings represents past net income less past dividends, and the balance is reflected on the Income Statement.

The JE for the issuance of common stock at par in payment of legal fees for organizing the entity reflects a credit to

The par value per share of common stock represents the

The state charter allows a corporation to issue only a certain number of shares. This amount of stock is called

The entry to record the issuance of common stock at a price above par includes a debit to

Characteristics of a corporation include