Question

Cutler Corporation is authorized to issue 10,000 shares of common stock. It sells 6,000 shares at $19 per share.

Required
Record the sale of the common stock, given the following independent assumptions:
1. The stock has a par value of $10 per share
2. The stock is no-par stock, but the board of directors has assigned a stated value of $8 per share
3. The stock has no par and no stated value

Answer 1

Step-by-step explanation:

here, D= debit , C= credit

D :Cash (6,000*19) =$114,000

C: Common Stock(6,000*10)= $60,000

C: Excess Capital in par value, Common stock =$54,000

D:Cash (6,000*19)= $114,000

C: Common Stock(6,000*8)= $48,000

C: Excess Capital in stated value, Common stock= $66,000

D: Cash (6,000*19)= $114,000

C: Common Stock(6,000*19)= $114,000