To expand operations, Aragon Consulting issued 1,900 shares of previously unissu

Question

To expand operations, Aragon Consulting issued 1,900 shares of previously unissued common stock with no-par value. Complete the table below, indicating the account, amount, and direction of the effect for the issuance of the no-par value stock at $50. (Enter any decreases to account balances with a minus sign.) Prepare the journal entry for the issuance of the no-par value stock at $50. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Explanation / Answer

1) Assets = Liabilities + Stockholders equity Cash   (1900*50) = + 95000 = 0 + (1900 * 50) = 95000 2) Journal entry Cash Dr 95000.00             Common stock - no par Cr 95000.00 ( To record issuance of 1900 no par stock @ 50 each)

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