$LAHO..Authorized shares have no monetary value until they're sold.
Authorized Versus Issued Stock
The amount of stock you issue differs from the amount of stock your company can issue. When you establish a corporation, the number of shares your business is authorized to issue is listed on the Articles of Incorporation filed with your home state. When shares are actually issued, the remaining number of shares your company is authorized to issue decreases. Authorized shares may be reported on the balance sheet.
However, reporting the authorized, but unissued, shares of stock serves more as a tool for keeping track of the number shares capable of being issued. Authorized shares have no monetary value until they're sold.
..Stockholder's Equity Account
The effect on the Stockholder’s Equity account from the issuance of shares is also an increase. Money you receive from issuing stock increases the equity of the company’s stockholders. You must make entries similar to the cash account entries to the Stockholder’s Equity account on your balance sheet
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