Issuance of No$-$Par Common Stock

Jackson & Company issued $100,000$ shares of $$1$ par value common stock at a price of $$5$ per share and issued $15,000$ shares of no$-$par value common stock at a price of $$10$ per share.

Prepare the journal entry to record the issuance of the no$-$par value common stock.

General Journal

Description Debit Credit

Answer

Answer

$0$

Answer

$0$

Answer

Answer

$0$

Answer

$0$

How does this entry differ from the entry to record the $$1$ par value common stock?

The entry to record the issuance of the $$1$ par value common stock would require the use of an Additional Paid$-$in Capital in Excess of Par Value account, whereas, it is not required for recording the issuance of the no$-$par value common stock.

The entries to record the issuance of both the no$-$par value common stock and the $$1$ par value common stock would require the use of an Additional Paid$-$in Capital in Excess of Par Value account.

The entries to record the issuance of both the no$-$par value common stock and the $$1$ par value common stock would not require the use of an Additional Paid$-$in Capital in Excess of Par Value account.

The entry to record the issuance of the no$-$par value common stock would require the use of an Additional Paid$-$in Capital in Excess of Par Value account, whereas, it is not required for recording the issuance of the $$1$ par value common stock.