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(a)
Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investor receives a share of profit from the profits earned by the corporation.
Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.
No-par common stock: The common stock that is issued at its fair market value is known as no-par common stock. Common stocks are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investor receives a share of profit from the profits earned by the corporation.
To Journalize: the issuance of common stock transaction at a par value of $5 per share for Corporation M on January 10.
To Journalize: the issuance of common stock transaction at $7 per share for Corporation M on July 1.
(b)
To Journalize: the issuance of common stock transaction at no-par value with a stated value of $1 for Corporation M on January 10.
To Journalize: the issuance of common stock transaction at no-par value with a stated value of $1 for Corporation M on July 1.
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