Rodriguez issued 16,000 common shares for $336,000. Journal entries differ based on stock value:
Par value ($18): Common Stock $288,000 + Paid-in Capital $48,000.
No par/stated: Common Stock $336,000.
Stated value ($9): Common Stock $144,000 + Paid-in Capital $192,000.
Journal Entries for Rodriguez Corporation's Common Stock Issuance:
Here are the journal entries for each situation you described:
1. Stock with $18 Par Value:
Debit: Cash - $336,000
Credit: Common Stock - $288,000 (16,000 shares * $18 par value)
Credit: Paid-in Capital in Excess of Par Value - $48,000 ($336,000 - $288,000)
2. Stock with No Par or Stated Value:
Debit: Cash - $336,000
Credit: Common Stock - $336,000
3. Stock with $9 Stated Value:
Debit: Cash - $336,000
Credit: Common Stock - $144,000 (16,000 shares * $9 stated value)
Credit: Paid-in Capital in Excess of Par Value - $192,000 ($336,000 - $144,000)
Key Differences:
Par value stocks: The par value represents the legal or stated value of a share. Any excess amount received above par value is recorded in "Paid-in Capital in Excess of Par Value."
No par or stated value stocks: These stocks lack a predetermined value per share. The entire issuance amount is credited to the "Common Stock" account.
Stated value stocks: Similar to par value stocks, stated value represents a fixed amount per share. However, any excess received is typically recorded entirely in "Paid-in Capital in Excess of Par Value," as the stated value is often lower than the market price.
Remember, the specific account titles and details may vary depending on the company's chart of accounts and accounting practices.