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Shannon Corporation issues common stock for $25,000. Recording this transaction will include a:______.

User AturSams
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Answer:

the complete journal entry for this transaction will be:

Date, issuance of common stocks

Dr Cash 25,000

Cr Common stock 25,000

If the par value of the stocks was lower than $25,000, for e.g. $15,000, instead of crediting only common stock account, you would need to credit both common stock (for $15,000) and additional paid in capital account (for $10,000).

User Hlorand
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