Question

Rodriguez Corporation issues 12,000 shares of its common stock for $145,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $8 par value. The stock has neither par nor stated value. The stock has a $4 stated value.

Answer 1

Event 1 : The stock has a $8 par value.

Debit : Cash $145,600

Credit : Common Stock $96,000

Credit : Paid in excess of par $49,600

Event 2 : The stock has neither par nor stated value.

Debit : Cash $145,600

Credit : Common Stock $145,600

Event 3 : The stock has a $4 stated value.

Debit : Cash $145,600

Credit : Common Stock $48,000

Credit : Paid in excess of par $97,600

Step-by-step explanation:

The journal entries have been prepaid above