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.
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| 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
