Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells 5,000 shares at $16 per share. Required:   Record the sale of the common stock, given the following independent assumptions:   1. The stock has a par value of $10 per share. 2. The stock is no-par stock, but the board of directors has assigned a stated value of $8 per share. 3. The stock has no-par and no stated value.

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Q: Caswell Corporation is authorized to issue 10,000 shares of common stock on December 31. It sells…

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Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.