Question

Exercise 11-2 Accounting for par, stated, and no-par stock issuances LO PI Rodriguez Corporation issues 15,000 shares of its common stock for $99,500 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $4 par value. 2. The stock has neither par nor stated value 3. The stock has a $2 stated value. View transaction list Journal entry worksheet 2 3 nces Record the issue of 15,000 shares of $4 par value common stock for $99,500 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit

Answer 1

1.

Journal

Date	Account Title and Explanation	Debit	Credit
Feb 20	Cash	99,500
	Common stock		60,000
	Paid in capital, in excess of par - common		39,500

2.

Journal

Date	Account Title and Explanation	Debit	Credit
Feb 20	Cash	99,500
	Common stock		99,500

3.

Journal

Date	Account Title and Explanation	Debit	Credit
Feb 20	Cash	99,500
	Common stock		30,000
	Paid in capital, in excess of stated - common		69,500

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