Chapter 13, Problem 3BE

To determine

Common Stock:

A category of ownership in a company that has the last right on the earnings of that company as the left out portion of earnings is attributed to these stockholders.

Journal entries:

Entries to record the financial transactions during each accounting period are called journal entries. Incomes, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver are debited if the balance is increased and credited if the balance is reduced in a journal entry.

To prepare: The journal entry for issuance of common stock on premium.