Rodriguez Corporation issues 9,000 shares of its common stock for $190,400

Rodriguez Corporation issues 9,000 shares of its common stock for $190,400 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

The stock has a $18 par value.
The stock has neither par nor stated value.
The stock has a $9 stated value.

Expert Solution

1.
Common stock = 9,000 shares × $18 per share = $162,000
Paid-in capital excess of par value, common stock = $190,400 – $162,000 = $28,400

3.
Common stock = 9,000 shares × $9 per share = $81,000
Paid-in capital in excess of stated value, common stock = $190,400 – $81,000 = $109,400

A	1	Cash	190,400
		Common stock, $18 par value		162,000
		Paid-in capital in excess of par value, common stock		28,400

B	2	Cash	190,400
		Common stock, no-par value		190,400

C	3	Cash	190,400
		Common stock, $9 stated value		81,000
		Paid-in capital in excess of stated value, common stock		109,400

Robert Otieno answered 3 years ago

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