Rodriguez Corporation issues 15,000 shares of its common stock for $139,600 cash

Question

Rodriguez Corporation issues 15,000 shares of its common stock for $139,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $6 par value. 2. The stock has neither par nor stated value. 3. The stock has a $3 stated value. View transaction list Journal entry worksheet Record the issue of 15,000 shares of $6 par value common stock for $139,600 cash Note: Enter debits before credits. Transaction General Journal Debit Credit

Explanation / Answer

Account Titles and Explaination Debit Credit 1 Cash $ 1,39,600 Common stock (15,000 X $6) $     90,000 Paid - in capital in excess of par value - Common stock $     49,600 (Being 15,000 shares issed at $6 par value) 2 Cash $ 1,39,600 Common stock $ 1,39,600 (Being 15,000 shares issedfor $1,39,600, no par or stated value) 3 Cash $ 1,39,600 Common stock (15,000 X $3) $     45,000 Paid - in capital in excess of par value - Common stock $     94,600 (Being 15,000 shares issed at $3 stated value)

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