On January 15, 2009, Tallyho Corp. incorporated in Georgia and was authorized to issue 3,000,000 shares of

Question:

On January 15, 2009, Tallyho Corp. incorporated in Georgia and was authorized to issue 3,000,000 shares of common stock. In an initial public offering, Tallyho sold 1,350,000 shares of for $18 per share.
Required:
(a) Prepare the journal entry to record the sale of the stock if Tallyho’s Has a $0.50 Has a $3.00 Is no-par value.
(b) Explain why selling at more than does not increase net income for the period.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...