--%>
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 : Darwin and Moths Conduct an internet

    Conduct an internet search by using the terms Darwin and Moths ("Darwin Moths", without the quotes). Learn about this famous illustration of Darwin's theory of natural selection, and write a brief paragraph describing it.

    		•
  • Q : What are Personal accounts What are

    What are Personal accounts. Describe their types?

    		•
  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

    		•
  • Q : APV capital budgeting framework How APV

    How APV capital budgeting framework is useful for analyzing the foreign capital expenditures?

    		•
  • Q : Book-value method of accounting for

    The stock is recorded at the book value of debt. The convertible debt is removed at the book value, the number of share times par is added to the stock account, and the remaining amount is plugged in to additional paid in capital. Contrast with the market value in whi

    		•
  • Q : Creativity and the Individual What are

    What are the various aspects of Creativity on an individual in the creative industry ?    

    		•
  • Q : MONEY MEASUREMENT CONCEPT DESCRIBE THE

    DESCRIBE THE ADVANTAGES AND DISADVANTAGES OF MONEY MEASUREMENT CONCEPT

    		•
  • Q : Small talk Define small talk and

    Define small talk and discuss its role in developing the relationship.

    		•
  • Q : Modeling Cases DRAFT TV COMMERCIALS

    Source: O'Conner, G. C., T.R. Willemain, and J. MacLachlau, 1996. "The value of competition among agencies in developing ad compaigns: Revisiting Gross's model." Journal of Advertising 25:51-63. Modeling Cases

    		•
  • Q : Computing cross-rate matrix Compute

    Compute cross-rate matrix for French franc, Japanese yen, German mark, and the British pound. Utilize most recent European term quotes in order to compute the cross-rates in order that the triangular matrix result is same as that of the portion above diagonal in Exhib

    		•