Issuing Common Stock

Thoman Products, Inc., sold 19,750 shares of common stock to stockholders at the time of its incorporation. Thoman received $24.40 per share for the stock.

Required:

Question Content Area

1. Assume that the stock has a $20 par value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.

2. Assume that the stock has a $15 stated value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.

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. If an amount box does not require an entry, leave it blank.

4. Conceptual Connection: How do the different par values affect total contributed capital and total stockholders' equity?