Rodriguez Corporation issues 6,000 shares of its common stock for $117,600 cash on February 20.

Rodriguez Corporation issues 6,000 shares of its common stock for $117,600 cash on February 20. Prepare journal entries to record this event under each of the following separate situations.

  

1.	The stock has a $12 par value.
2.	The stock has neither par nor stated value.
3.	The stock has a $6 stated value.

Answer


Explanation:
1.    Common stock = 6,000 shares × $12 per share = $72,000
     Paid-In Capital excess of par value, Common stock =  $117,600 – $72,000 = $45,600
    
3.    Common stock =  6,000 shares × $6 per share = $36,000
     Paid-In Capital in Excess of Stated value, Common stock =  $117,600 – $36,000 = $81,600