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8 July, 22:39

Exercise 13-2 Accounting for par, stated, and no-par stock issuances LO P1 Rodriguez Corporation issues 10,000 shares of its common stock for $40,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $2 par value. The stock has neither par nor stated value. The stock has a $1 stated value.

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  1. 9 July, 02:18
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    Entries under 2$ par value.

    Dr Cash (2*10000) 20000

    Cr Share capital 20000

    Cr Share premium (40800-20000) 20800

    (To record share issue in excess of par and when par is at $2)

    Entries under 1$ par value

    Dr Cash (1 * 10000) 10000

    Dr Share discount (40800-10000) 30800

    Cr Share capital 40800

    (To record share issue at discount)
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