Question

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.
  

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

Answer 1

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