### Issuance of Common Stock by Rodriguez Corporation**Scenario:**Rodriguez Corporation issues 17,000 shares of its common stock for $265,500 cash on February 20. Prepare journal entries to record this event under each of the following separate situations:1. The stock has a $14 par value.2. The stock has neither par nor stated value.3. The stock has a $7 stated value.**Detailed Explanation and Journal Entry Examples**To prepare the appropriate journal entries, it is essential to understand the difference between par value, no-par value, and stated value of stock. Each scenario will present a unique entry that accurately reflects the nature of the transaction.#### Scenario 1: $14 Par Value Stock**Entry:**- **Cash:** Debit $265,500- **Common Stock (17,000 × $14):** Credit $238,000- **Paid-in Capital in Excess of Par:** Credit $27,500#### Scenario 2: No Par and No Stated Value**Entry:**- **Cash:** Debit $265,500- **Common Stock:** Credit $265,500#### Scenario 3: $7 Stated Value**Entry:**- **Cash:** Debit $265,500- **Common Stock (17,000 × $7):** Credit $119,000- **Paid-in Capital in Excess of Stated Value:** Credit $146,500### Journal Entry Worksheet ExampleThe following image provides an example of a journal entry worksheet for Scenario 2, where the stock has neither par nor stated value:![Journal Entry Worksheet](image_url)**Entering Transaction for No Par, No Stated Value Stock:**1. Note the instruction: "Record the issue of 17,000 shares of no-par, no-stated value common stock for $265,500 cash."2. Since there is no par value and no stated value, the entire amount received from the issuance of the stock is credited directly to the Common Stock account.**Fields to Fill:**- **General Journal:** - **Debit:** Cash $265,500 - **Credit:** Common Stock $265,500**Graphical Explanation:**The "Journal entry worksheet" has fields for transaction number, account titles, debits, and credits. It includes the instruction to "Enter debits before credits" and buttons to "Record entry," **Issuance of Common Stock: Journal Entries**Rodriguez Corporation issues 17,000 shares of its common stock for $265,500 cash on February 20. Prepare journal entries to record this event under each of the following separate situations:1. The stock has a $14 par value.2. The stock has neither par nor stated value.3. The stock has a $7 stated value.#### 1. Recording with $14 Par Value **Journal entry worksheet** Record the issue of 17,000 shares of $14 par value common stock for $265,500 cash. **Note**: Enter debits before credits. | Transaction | General Journal | Debit | Credit | |-------------|------------------------------------|------------|------------| | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Buttons: - Record entry - Clear entry - View general journal #### 2. Recording with No Par or Stated Value - Add entry in appropriate form based on scenario.#### 3. Recording with $7 Stated Value - Add entry in appropriate form based on scenario.**Graph/Diagram Explanation**The image contains a section titled "Journal entry worksheet" featuring an instructional text box and a table for entering journal transactions. The table includes columns for the transaction number, general journal description, and separate columns for debits and credits. Below the table are buttons labeled "Record entry," "Clear entry," and "View general journal."For the educational website, ensure that users understand the paths for different accounting scenarios involving common stock issuance. Additionally, provide interactive features similar to those depicted for practical application purposes.

The company can raise funds by various methods. Some of them are, by way of issuing common stock,…

Rodriguez Corporation issues 17,000 shares of its common stock for $265,500 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $14 par value. 2. The stock has neither par nor stated value. 3. The stock has a $7 stated value.

Rodriguez Corporation issues 17,000 shares of its common stock for $265,500 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $14 par value. 2. The stock has neither par nor stated value. 3. The stock has a $7 stated value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Rodriguez Corporation Issues 13,000 shares of its common stock fo $201.300 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. View transaction Bet Journal entry worksheet E Record the issue of 13,000 shares of 512 par value common stock for 5201,300 cash. A
Give me correct answer and explanation please.vi
Prepare the appropriate general journal entries for the following treasury stock transactions of Aberdeen Inc. Oct. 15 Purchased 7,000 shares of its $15 par common stock for $70,000 and placed the stock in the treasury. Dec. 1 Sold 2,000 shares of the treasury stock for $18,000 cash. Dec. 31 Sold the remaining treasury stock for $56,000 cash.
Nebraska Inc. issues 2,300 shares of common stock for $73,600. The stock has a stated value of $12 per share. The journal entry to record the stock issuance would include a credit to Common Stock for a.$73,600 b.$27,600 c.$2,300 d.$46,000
please answer
Subject :- Accounting
On June 1, Larkspur, Inc. issues 1,100 shares of no-par common stock at a cash price of $8 per share.Journalize the issuance of the shares.
On May 10, a company issued for cash 1,600 shares of no-par common stock (with a stated value of $4) at $17, and on May 15, it issued for cash 2,000 shares of $17 par preferred stock at $61. Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value. If an amount box does not require an entry, leave it blank.
Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 6,000 shares of $20 par value common stock for $144,000 cash. 2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has a $2 per share stated value. 3. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has no stated value. 4. A corporation issued 1,500 shares of $75 par value preferred stock for $164,000 cash. View transaction list Journal entry worksheet B C Record the issue of 6,000 shares of $20 par value common stock for $144,000 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit 1