Question

Gothic Architecture is a new chain of clothing stores specializing in the color black. Gothic issues 1,000 shares of its $1 par value common stock at $24 per share.
Record the issuance of the stock. How would the entry differ if Gothic issued no-par value stock? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer:

Date - - - - Acc title - - - - - - - - - - Dr--------Cr

--------------- Cash------------------- 24,000

-----------------common stock - - - - - - - - - -1000

----------------Add. P-in-cap-com - - - - - - 29000

Explanation:

Number of shares = 1000

Price per share = $24

Par value = $1

Cash (number of shares × price per share) 1000 × $24 = $24,000

Common stock (number of shares × par value) = 1000 × $1 = $1000

Add. p-in-cap-com = Additional paid in capital