Question

Rodriguez Corporation issues 10,000 shares of its common stock for $211,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

1. The stock has a $18 par value.
2. The stock has neither par nor stated value.
3. The stock has a $9 stated value.
Record the issue of 10,000 shares of $8 par value common stock for $122,200 cash.

Answer 1

Answer: Please find answers in the explanation column

Step-by-step explanation:

1.Journal To record issue of common stock at $18 par value

Date Accounts & explanation Debit Credit

Feb 20 Cash $211,600

Common stock at $18 par value (10000 X 18) $180,000

Paid in capital in excess of par value-common stock $31,600

( $211,600 - $180,000 )

2. Journal entry To record issue of common stock at neither par nor stated value.

Date Accounts & explanation Debit Credit

Feb 20 Cash $211, 600

Common stock $211, 600

3. Journal To record issue of common stock at $9 stated value

Date Accounts & explanation Debit Credit

Feb 20 Cash $211, 600

Common stock (10,000 X 9) $90,000

Paid in capital in excess of stated value-common stock $121,600

( $211,600 - $90,000 )

4 . Journal To record issue of common stock at $8 par value

Date Accounts & explanation Debit Credit

Feb 20 Cash $211, 600

Common stock (10,000 X 8) $80,000

Paid in capital in excess of par value-common stock $131,600

( $211,600 - $80,000 )