As soon as a corporation is authorized to issue stock an accounting journal entry should be made recording the total value of the shares authorized.

Name: As soon as a corporation is authorized to issue stock an accounting journal entry should be made recording the total value of the shares authorized.
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Question

Quizplus · Accepted Answer

The authorization of stock does not require a journal entry as it is only a legal process. The issuance of the stock would require a journal entry to record the value of the shares issued.

As Soon as a Corporation Is Authorized to Issue Stock