
(a)
Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receive a share of profit from the profits earned by the corporation in the form of dividend.
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.
Stated value: It refers to an amount per share, which is assigned by the board of directors to no par value stock.
To Journalize: The transactions, assume that the common stock has a par value of $5 per share.
(b)
To Journalize: The transactions, assume that the common stock has a stated value of $1 per share.

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Financial Accounting, 10e WileyPLUS Registration Card + Loose-leaf Print Companion
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