11 a corporation can be organized for the purpose of making a profit or it may be no 4296922
11. A corporation can be organized for the purpose of making a profit or it may be nonprofit.
12. The two main sources of stockholders' equity are investments contributed by stockholders and net income retained in the business.
13. When no-par common stock with a stated value is issued for cash, the common stock account is credited for an amount equal to the cash proceeds.
14. The par value of common stock must always be equal to its market value on the date the stock is issued.
15. For accounting purposes, stated value is treated the same way as par value.
16. The issuance of common stock affects both paid-in capital and retained earnings.
17. The main source of paid-in-capital is from issuing stock.
18. Some corporations have stopped issuing stock certificates to stockholders.
19. The number of shares of outstanding stock is equal to the number of shares authorized minus the number of shares issued.
20. The amount of capital paid in by the stockholders of the corporation is called legal capital.