Question

caesar cruise lines, inc. issues 6,000 shares of common stock with a $2 par value. the issue price of the stock is $21 per share, and th ecompany paid an undwriter $500 in stock issue costs. what is the journal entry required to record the issuance of the shares

Answer 1

Journal Entry

Step-by-step explanation:

The Journal Entry is shown below:-

Cash Dr, $125,500

(6,000 × $21 - $500)

To common stock 6,000

To Additional paid in capital $119,500

in excess of par-common

(Being the issuance of the shares is recorded)