Carmean Products Inc. sold 32,350 shares of common stock to stockholders at the time of its incorporation. Carmean received $42 per share for the stock.
Required:
1. Assume that the stock has a $22 par value per share. Prepare the journal entry to record the sale and issue of the stock.
2. Assume that the stock has a $8 stated value per share. Prepare the journal entry to record the sale and issue of the stock.
3. Assume that the stock has no par value and no stated value. Prepare the journal entry to record the sale and issue of the stock.
4. How do the different par values affect total contributed capital and total stockholders' equity?