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 $14 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 Particular Transaction/Event, Select "No Journal Entry Required"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 $14 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 particular transaction/event, select "No Journal Entry Required" in the first account field.)
1. Record the issuance of common stock above the par value.
2. Record the issuance of common stock above the par value.
Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $18 per share.
1. Record the issuance of the preferred shares. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
California Surf Clothing Company issues 1,000 shares of $1 par value common stock at $15 per share. Later in the year, the company decides to purchase 100 shares at a cost of $18 per share.
1. Record the purchase of treasury stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Gothic Architecture issued 1,000 shares of its $1 par value common stock at $14 per share. The entry to record this issuance would be a debit to Cash and a credit to Common Stock and Paid-in Capital. If Gothic Architecture issued no-par value stock, the entry would only include a debit to Cash and a credit to Common Stock.

Step-by-step explanation:

When a company issues stock, it needs to record the transaction in its accounting records. In this case, Gothic Architecture issued 1,000 shares of its $1 par value common stock at $14 per share. The journal entry to record this issuance would be:

1. Debit: Cash - $14,000
2. Credit: Common Stock - $1,000
3. Credit: Paid-in Capital in Excess of Par Value - $13,000

If Gothic Architecture issued no-par value stock, the entry would be simplified as there is no par value to consider. The journal entry to record this issuance would be:

1. Debit: Cash - $14,000
2. Credit: Common Stock - $14,000