--%>
Assignment Help - homework help

Adjunct Account

What do you mean by the term Adjunct Account?

E

Expert

Verified

Adjunct Account: Adjunct account is that liability account that raises other liability's book value. For illustration, when a corporation issues $100,000 of shares at a value of $105 per share, it will be issuing the shares at a premium of 5%. The journal entry will comprise a debit to Cash for $105,000; a credit to shares Payable for $100,000; and a credit to Premium on shares Payable for $5,000. As credit balance is normal balance for a liability account, the account Premium on shares Payable can be termed to as an adjunct account. Instantly subsequent to the shares are issued, the shares will have a carrying value of $105,000.

   Related Questions in Financial Accounting

  • Q : Explain accounting equation in brief..

    what is accounting equation? explain accounting equation and explain its importance?

    		•
  • Q : Investing in dual currency bonds What

    What an investor should consider before investing in dual currency bonds?

    		•
  • Q : Retail Invoice versus Tax Invoice

    Explain the difference between Retail Invoice vs. Tax Invoice?

    		•
  • Q : Problem on National income Providing

    Providing reasons, describe the treatment assigned to the following which estimates national income.(i) Family members working freely on farm owned by family.(ii) The Payment of interest on borrowings through general government.

    		•
  • Q : Freedmens Bureau What did Freedmen’s

    What did Freedmen’s Bureau do?

    		•
  • Q : Challenges of friendships How is

    How is friendship differing from other relationships? Explain the challenges of friendships. What are the common expectations for friendships – give an illustration of each. Explain how friendships fluctuate ove

    		•
  • Q : Segmented and Integrated capital markets

    Explain how cost of the capital is computed in the segmented vs. integrated capital markets.

    		•
  • Q : Currency options and forward contract

    State some of the advantages of currency options contract as a hedging tool as compared with the forward contract?

    		•
  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

    		•
  • Q : Increase the return without any

    Suppose that treasurer of IBM has an extra cash reserve of $1,000,000 to invest for the six months. Six-month interest rate is 8% per annum in U.S. and 6% per annum in the Germany. Presently, spot exchange rate is DM1.60 per dollar and six-month forward exchange rate

    		•