Question 3: A company issues 1,000 shares of common stock at $20 per share. Provide a comprehensive explanation of the journal entries and ledger postings for this stock issuance transaction, including its impact on financial statements.

Requirements:

1. Record the journal entry to recognize the issuance of common stock.
2. Post the journal entry to the Common Stock account in the ledger.
3. Calculate the total amount of proceeds received from the issuance.
4. Record any additional paid-in capital in excess of par value.
5. Post the journal entry to the Additional Paid-in Capital account in the ledger.
6. Analyze how this transaction affects the company's balance sheet and equity section.
7. Discuss the significance of issuing common stock for a company.
8. Explain the impact of issuing common stock on shareholders' equity and ownership.
9. Evaluate the potential dilutive effect of issuing additional shares on existing shareholders.
10. Illustrate how the issuance of common stock provides financing for the company's operations and growth initiatives.