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shepuryov [24]
3 years ago
13

Western Wear Clothing issues 3,000 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming t

he issue price is $11 per share, record the issuance of common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Business
1 answer:
Komok [63]3 years ago
3 0

Answer:

The journal entry for the issuance of the common stock is shown below:

Explanation:

Cash A/c.............................................Dr    $33,000

     Common Stock A/c........................Cr   $30

     Paid in Capital A/c...........................Cr   $32,970

Working Notes:

Cash = Number of shares × Issue Price

= 3,000 × $11

= $33,000

Common Stock = Number of Shares × Par Value

= 3,000 ×  $0.01

= $30

Paid in Capital = Cash - Common stock

= $33,000 - 30

= $32,970

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