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11 March, 23:31

Environmental Designs issues 4,000 shares of its $1 par value common stock at $14 per share. (1) Record the issuance of the stock. (2) Record the issuance of the stock assuming it is no-par value stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 11 March, 23:59
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    1. Dr Cash $56,000

    Cr Common stock $4,000

    Cr Paid-in capital in excess of par $52,000

    2.

    Dr Cash $56,000

    Cr Common stock no par value $56,000

    Explanation:

    The cash proceeds from the issue of common stock is $14*4000=$56,000

    Consequently, the cash account is debited with $56,000 and corresponding credit entries would to common stock account with $4,000 ($1*4000) and paid-in capital in excess of par $52,000 ($14-$1) * 4000))

    However, when there is no par amount the $56,000 cash proceeds is debited to cash account and credited to common stock no par value account
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