Environmental Designs issues 4,000 shares of its $1 par value common stock at $14 per share. (1) Record the issuance of the stock. (2) Record the issuance of the stock assuming it is no-par value stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1. Dr Cash $56,000

Cr Common stock $4,000

Cr Paid-in capital in excess of par $52,000

2.

Dr Cash $56,000

Cr Common stock no par value $56,000

Explanation:

The cash proceeds from the issue of common stock is $14*4000=$56,000

Consequently, the cash account is debited with $56,000 and corresponding credit entries would to common stock account with $4,000 ($1*4000) and paid-in capital in excess of par $52,000 ($14-$1) * 4000))

However, when there is no par amount the $56,000 cash proceeds is debited to cash account and credited to common stock no par value account