Gothic Architecture is a new chain of clothing stores specializing in the color black. Gothic issues 1,000 shares of its $1 par value common stock at $17 per share. Record the issuance of the stock. How would the entry differ if Gothic issued no-par value stock

Answer and Explanation is below

Explanation:

Gothic Architecture

Number of shares 1,000

Issued value (1,000*$17) 17,000

1. We are going to Record the issuance of common stock at $17 per value because Gothic issues the 1,000 shares of its $1 par value common stock at $17 per share.

Dr Cash (1000 x 17) 17,000

Cr Common Stock (1000 x 1) 1,000

Paid in Capital in excess of per value Common 16,000

(17,000-1,000)

2. We are going to Record the issuance of the stock (no par value) if Gothic issued no-par value stock by Debiting Cash with 17,000 and Crediting common stock with the same amount.

Dr Cash 17,000

Cr Common stock 17,000