BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281

Solutions

Chapter
Section
BuyFindarrow_forward

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem
6 views

Par Value and No-Par Stock Issuance Caswell Corporation is authorized to issue 10,000 shares of common stock. It sells 6,000 shares at $19 per share.

Required:

Record the sale of the common stock, given the following independent assumptions:

  1. 1. The stock has a par value of $10 per share.
  2. 2. The stock is no-par stock, but the board of directors has assigned a stated value of $8 per share.
  3. 3. The stock has no-par and no stated value.

1.

To determine

Prepare a journal entry to record the sale of common stock has a par value of $10 per share.

Explanation

Common stock: Common stock is the cash raised by the company by issuing common or ordinary shares to the stockholders. This is an investment for the shareholders for which they receive the dividends from the issuing company, and have voting rights.

Prepare a journal entry to record the sale of common stock has a par value of $10 per share:

Account title and ExplanationPost Ref.

Debit

($)

Credit

($)

Cash (6,000×$19) $114,000 
    Common stock, $10 par (

2.

To determine

Prepare a journal entry to record the sale of common stock has a stated value of $8 per share.

3.

To determine

Prepare a journal entry to record the sale of common stock has no par value and no stated value.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Can direct materials ever be irrelevant in a make-or-buy decision? Explain.

Managerial Accounting: The Cornerstone of Business Decision-Making

Why cant the Fed control the money supply perfectly?

Brief Principles of Macroeconomics (MindTap Course List)

Check recent headlines on the website to see the companys recent news stories. Have there been any recent event...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

How is depletion determined?

Survey of Accounting (Accounting I)