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Asked Dec 20, 2019
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Step 1

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.

Step 2

Journal entry:

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Account title and explanation Cash Common stock (1,900shares×$7) Paid in capital in excess of par value Debit ($) Credit ($) Date 39,900 13,300 26,600

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