Answer:
Explanation:
The journal entry is shown below:
1. Cash A/c Dr $20,000 (1,000 shares × $20)
To Common Stock $1,000 (1,000 shares × $1)
To Additional Paid-in Capital in excess of par - Common Stock $19,000
(The issuance of the shares is reported and the amount remaining is credited to the additional paid-in capital account)
In the case of no par value stock, the journal entry would be
Cash A/c Dr $20,000 (1,000 shares × $20)
To Common Stock A/c $20,000
(Being the issuance of the shares is recorded)
