Question

Rodriguez Corporation issues 8,000 shares of its common stock for $133,700 cash on February 20 prepare journal entries to record this event under each of the following separate situations

1. The stock has a $12 par value

2. The stock has neither par nor stated value

3. The stock has a $6 stated vale

Answer 1

1
Cash	133700
Common stock, $12 par value		96000	=8000*12
Paid in capital in excess of par value, common stock		37700
2
Cash	133700
Common stock, no par value		133700
3
Cash	133700
Common stock, $6 stated value		48000	=8000*6
Paid in capital in excess of stated value, common stock		85700