--%>
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 : Financial hedging of firm’s operating

    List disadvantages and advantages of the financial hedging of firm’s operating exposure through the operational hedges (like relocating the manufacturing site)?

    		•
  • Q : Maintaining multiple manufacturing

    Write down disadvantages and advantages of maintaining the multiple manufacturing sites as the hedge against exchange rate exposure.

    		•
  • Q : Explain accounting equation in brief..

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

    		•
  • Q : French Association of Private Companies

    In the year 1995, working group of the French chief executive officers was formed by the Confederation of French Industry (CNPF) and the French Association of Private Companies (AFEP) for studying the structure of the French corporate governance. Group has reported th

    		•
  • Q : Interference of two light waves Find

    Find and make a graph of the light intensity distribution at the interference between 2 laser beams. The data parameter are : Question Each beam has a equal diameter of 20 micro meter The angle

    		•
  • Q : Hedgers and Speculators Explain hedgers

    Explain hedgers and speculators are two types of economic agents required for a derivatives market to function.

    		•
  • Q : Uniform costing benefits The uniform

    The uniform costing executed? It is beneficial for an organization?

    		•
  • Q : Cause why relationships tend to come

    Identify and briefly explain the patterns in terms of how relationships tend to come apart (not together) or deteriorate. Use a real or hypothetical illustration to describe each of such phases.

    		•
  • Q : Variants of basic interest rate and

    Discuss briefly some of the variants of the basic interest rate and currency swaps.

    		•
  • Q : Accouning Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

    		•