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LSDefine

Simple English definitions for legal terms

capital surplus

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A quick definition of capital surplus:

Capital surplus is the extra money a company has after it has paid all its debts and expenses. It can come from things like selling stock for more than it's worth or getting donations. This money is different from the money the company has earned from its business. It's like having extra money in your piggy bank after you've paid for everything you need. The company can use this extra money for things like buying new equipment or expanding its business.

A more thorough explanation:

Definition: Capital surplus is the excess of a corporation's net worth beyond the par value of its capital stock. It is a type of surplus that is not earned from the accumulation of profits, but rather created by financial reorganization or gifts.

Examples:

  • Paid-in surplus: This is the surplus gained by the sale, exchange, or issuance of capital stock at a price above par value. For example, if a company issues 100 shares of stock at $50 per share, but the par value is only $10 per share, the paid-in surplus would be $4,000 ($50 - $10 = $40 x 100 shares).
  • Donated surplus: This is the increase in the shareholders' equity account resulting from assets (such as stock) contributed to a corporation. For example, if a shareholder donates 50 shares of stock to a company, and the par value is $10 per share, the donated surplus would be $500 (50 shares x $10 per share).
  • Appropriated surplus: This is the portion of surplus earmarked for a specific purpose. For example, a company may set aside a portion of its surplus for research and development or to pay off debt.

These examples illustrate how capital surplus is different from earned surplus, which is the surplus gained from a company's profits. Capital surplus is created through financial transactions or gifts, and can be used for various purposes such as investments or paying off debt.

capital structure | capital transaction

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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