Final answer:
The question does not provide sufficient details to prepare the exact entry for Pergolesi Products, Inc.'s new stock issue. In general terms, the journal entry involves debiting the Cash or Bank account, crediting Common Stock for the par value, and crediting any additional funds received over the par value to Additional Paid-in Capital, with underwriting fees deducted from the cash received.
Step-by-step explanation:
The question relates to Pergolesi Products, Inc., which issued 5,000 shares of no-par common stock with a $2 per share stated value at a market price of $35 per share. The company incurred $12,000 in underwriting fees for the issuance. To record the new stock issue, an accounting entry would be made. However, as the details of the financial transaction are not provided, a specific journal entry cannot be created. Normally, the Cash or Bank account would be debited with the total amount received from the issuance, the Common Stock account would be credited for the aggregate par value of the shares issued, and additional paid-in capital would be credited for the excess of the cash received over the par value. Underwriting fees would be deducted from the total cash, reducing the additional paid-in capital.