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26 May, 04:54

Rodriguez Corporation issues 19,000 shares of its common stock for $152,000 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $2 par value. The stock has neither par nor stated value. The stock has a $5 stated value.

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  1. 26 May, 04:56
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    Explanation:

    Part 1: when stock has a $2 par value

    Cash Debit 152000

    Common Stock (19000*2) Cr. $38000

    Paid-in Capital in Excess of Par Value (152000 - 38000) Cr.$ 114000

    Part 2: when stock has neither par nor stated value

    Cash Dr. 152000

    Common Stock Cr. 152000

    Part 3: when stock has a $5 stated value

    Cash Debit 152000

    Common Stock (19000*5) Cr.$95000

    Paid-in Capital in Excess of Stated Value (152000 - 95000) Cr.$57000
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