Ryland Carpet Corporation sells 20,000 shares of its common stock for $10 per share. Required: (1) Using

Question:

Ryland Carpet Corporation sells 20,000 shares of its common stock for

$10 per share.

Required: (1) Using T-accounts, show how Ryland Carpet Corporation would record this transaction under each of the following independent assumptions:

(a) The stock has a par value of $2 per share.

(b) The stock has a par value of $5 per share.

(c) The stock has a par value of $7 per share.
(2) If you were a stockholder of Ryland Carpet Corporation, which par value would you prefer? Why? TK-1

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