hey whats the journal entry for common stock

Solutions

Expert Solution

1) Issuance of par-value common stock for cash:

Journal entry will be

Debit Cash account for the amount of proceeds received from the common stock issuance.

Credit Paid-in Capital in Excess of Par Value for the amount of proceeds received above the par value (it means Cash – Common Stock; (sales price minus par value) * number of shares issued).

Credit Common Stock account for the par value of the common stock issued (it means par value * number of shares issued).

2) Issuance of no-par value common stock for cash:

Journal entry will be

1) Stated Value:

Journal entries will be same to the par-value common stock

Debit Cash account for the amount of proceeds received from the common stock issuance.

Credit Paid-in Capital in Excess of Par Value for the amount of proceeds received above the par value (it means Cash – Common Stock; (sales price minus par value) * number of shares issued).

Credit Common Stock account for the par value of the common stock issued (it means par value * number of shares issued).

2) No Stated Value:

Debit Cash account for the amount of proceeds received from the common stock issuance.

Credit Common Stock account for the amount of proceeds from from the common stock issuance.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Describe the journal entry for a stock dividend on common stock (which has a par value)....

Describe the journal entry for a stock dividend on common stock (which has a par value). Be sure to address the difference between a small and large stock dividend with regard to amounts used to adjust retained earnings. Since you are describing the journal entry, remember to address what accounts are used and any corresponding debits and credits.

You will provide the journal entry to record issuing of common stock shares by a corporation,...

You will provide the journal entry to record issuing of common stock shares by a corporation, record issuing of cumulative preferred stock, and record a declaration of stock split. Part 1: Company A During 2018, Company A has the following transactions involving its common and preferred stock: Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share...

Infosys Company issued 200,000 shares of its common stock for cash. The journal entry to record...

Infosys Company issued 200,000 shares of its common stock for cash. The journal entry to record the stock issue would include Select one: a. A debit to Common Stock b. A debit to Retained Earnings c. A credit to Cash d. A credit to Common Stock

Prepare the journal entry to record Jevonte Company’s issuance of 36,000 shares of its common stock...

Prepare the journal entry to record Jevonte Company’s issuance of 36,000 shares of its common stock assuming the shares have a: $2 par value and sell for $18 cash per share. $2 stated value and sell for $18 cash per share. 1. Record the issuance of 36,000 shares of common stock assuming the shares have a $2 par value and sell for $18 cash per share. 2. Record the issuance of 36,000 shares of common stock assuming the shares have...

What is the journal entry for the sale of 5,000 shares of $1 par value common...

What is the journal entry for the sale of 5,000 shares of $1 par value common stock for $9/share? Debit Common Stock 5,000; Credit Cash 5,000 Debit Cash 5,000; Credit Common Stock 5,000 Debit Cash 45,000; Credit Common Stock 45,000 Debit Cash 45,000; Credit Common Stock 5,000, Credit Paid-In Capital in Excess of Par-Common 40,000 What is the journal entry for the purchase of 500, $2 par value common stock for $20 as treasury shares? Debit Common Stock 1,000, Debit...

A. Prepare the journal entry required to record the preferred stock issue. B. Prepare the journal entries required...

A. Prepare the journal entry required to record the preferred stock issue. B. Prepare the journal entries required to record the declaration and payment of the cash dividends. C. Prepare the stockholders' equity section of the balance sheet at the end of the year. Tough Side Roofing and Siding Inc. reported the following shareholders' equity section as of the beginning of the current year. Stockholders' Equity Contributed Capital: Common Stock, $4 par value, 2,360,000 authorized and 785,000 shares issued, and 727,500 shares outstanding...

1. The journal entry to record sale of repurchased stock is: 2. Describe the impact of...

1. The journal entry to record sale of repurchased stock is: 2. Describe the impact of a treasury stock transaction on total shareholder’s equity. 3. Explain why companies issue stock splits ---- Using a textbook example, compare the line items in equity before and after a stock split: Before After Split Split Stockholders’ equity Paid-in capital Common stock, $10 par Paid-in capital in excess of par value Total paid-in capital Retained earnings Total stockholders’ equity Outstanding shares

1. Prepare the journal entry to record the purchase of 1,000 shares of treasury stock at...

1. Prepare the journal entry to record the purchase of 1,000 shares of treasury stock at $10 per share. 2. Prepare the journal entry to record the issuance of 1,000 shares of $3 par value preferred stock at $15 per share. 3. Prepare the journal entry to record the issuance of 1,000 shares of $2 par value common stock at $10 per share.

What is the journal entry and adj journal entry for this? Your company issued 1,000, 2.9%...

What is the journal entry and adj journal entry for this? Your company issued 1,000, 2.9% bonds (face value of each bond is $1,000) at 96.8229 on July 1st, 2019. The bonds are due on July 1, 2024, with interest payable each January 1 and July 1. The market rate at the time of the bond issuance was 3.6 Percent. Use the effective-interest method to calculate both the interest expense and the amortization of the bond discount when each interest...

Journalize the entry below in the provided two column journal. Journal entry explanations are not required.

• Journalize the entry below in the provided two column journal. Journal entry explanations are not required. • September 27 - Paid Rowzen Equipment, a creditor, $500 on account • After entering the above journal entry in the journal, post the journal in the provided four-column ledger. • Enter the ending balance in the four-column ledger for each account.

Subjects