Rodriguez Corporation issues 7,000 shares of its common stock for $31,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $2 par value. 2. The stock has neither par nor stated value. 3. The stock has a $1 stated value.
Rodriguez Corporation issues 7,000 shares of its common stock for $31,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. 1. The stock has a $2 par value. 2. The stock has neither par nor stated value. 3. The stock has a $1 stated value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Prepare journal entries to record this event under each of the following separate situations.
Transcribed Image Text:Rodriguez Corporation issues 7,000 shares of its common stock for $31,800 cash on February 20. Prepare journal entries to record
this event under each of the following separate situations.
1. The stock has a $2 par value.
2. The stock has neither par nor stated value.
3. The stock has a $1 stated value.
View transaction list
Journal entry worksheet
A
B
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Record the issue of 7,000 shares of $2 par value common stock for $31,800
cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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Transcribed Image Text:Rodriguez Corporation issues 7,000 shares of its common stock for $31,800 cash on February 20. Prepare journal entries to record
this event under each of the following separate situations.
1. The stock has a $2 par value.
2. The stock has neither par nor stated value.
3. The stock has a $1 stated value.
View transaction list
Journal entry worksheet
く
A
C
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Record the issue of 7,000 shares of no-par, no-stated value common stock for
$31,800 cash.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
2
View general journal
Clear entry
Record entry
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Next >
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Expert Solution
Step 1
Lets understand the basics.
Stated value or par value is a value which is assign to corporation's stock for internal accounting purpose.
Any amount received up to stated value is considered towards share capital and anything over and above that considered as additional paid up capital.
If shares are not having any stated value then whole value if considered towards the paid up capital.
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