Question
Asked Nov 5, 2019
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Q. question 2

The Shoe Exchange issues 4,000 shares of its $1 par value common stock to provide funds for further expansion. The issue price is
$12 per share.
What is the entry to record the issuance of the stock? (If no entry is required for a particular transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
K
Record the issuance of the stock
Note: Enter debits before credits.
Credit
Transaction
General Journal
Debit
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The Shoe Exchange issues 4,000 shares of its $1 par value common stock to provide funds for further expansion. The issue price is $12 per share. What is the entry to record the issuance of the stock? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet K Record the issuance of the stock Note: Enter debits before credits. Credit Transaction General Journal Debit

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Expert Answer

Step 1

Issued stock:

Issued stock is the shares of a company that has been distributed to investors. These are all of the shares representing the total ownership interest in a business. This include shares held both by corporate outsiders and insiders.

Step 2

Following is the Journal Entry to...

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Date Account Title and Explanation Cash Account Debit (4,000 x $12) To Common Stock Account Debit (Note:1) To Additional Paid in Capital - Common Stock (Being to record issue of 4000 shares of common stock) Debit ($) $48,000 Credit S) $4000 $44,000 Note: 1 Par value 1 Total = 4, 000 x = $4,000

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