Common Stock – Ford Online Accounting Manual

Liabilities and Net Worth

COMMON STOCK	NET WORTH ACCOUNT
	2801

Par value, or if no par value, the stated value, of common stock issued and outstanding.

			Jrnl.	Dr.	Cr.

Stated value of Common stock issued for cash at a premium			CR
	Cash in Bank—General			1001
		Common Stock (stated value)			2801
		Other Capital (premium)			2802

This account should be used only by dealerships operating as corporations.
The balance in this account should agree with the outstanding Common stock recorded in the common stock certificate register.
Common stock reacquired by gift or purchase should be charged to Account 2803, Treasury Stock, and continue to be recorded as outstanding in Account 2801 until legally retired.
Transactions involving retirement of repurchased Common stock and payment of stock dividends should be handled in accordance with accounting advice and legal and tax counsel.