Question

Rodriguez Corporation issues 10,000 shares of its common stock for $125,100 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $8 par value. 2. The stock has neither par nor stated value. 3. The stock has a $4 stated value. View transaction list Journal entry worksheet 1 2 3 Record the issue of 10,000 shares of $8 par value common stock for $125,100 cash.

Answer 1

Answer:

Transaction	Description	Debit $	Credit $
1	Cash	125100
	Common stock(10,000 x8)		80000
	Paid-in capital in excess of par value, common stock (125100-80000)		45100
	(To record the issue of common stock)

Transaction	Description	Debit $	Credit $
2`	Cash	125100
	Common stock, no-par value		125100

Transaction	Description	Debit $	Credit $
3	Cash	125100
	Common stock(10,000 x4)		40000
	Paid-in capital in excess of par value, common stock (125100-40000)		85100
	(To record the issue of common stock)