Stock Issuance Entries Create the journal entries for each transaction. Please note your calcul for the journal entry figures. 1. Inguinal Mfg. issued 12,000 shares of its $2.50 par value common stock at $7.00 per share. 2. On July 1st, Inguinal issued an additional 20,000 shares of its common share. 3. On December 31, 2020, the Board of Directors of Inquinal paid a divide common shares issued ad outstanding. journal entries for each transaction. Please note your calculations, if any, urnal entry figures. Afg. issued 12,000 shares of its $2.50 par value common stock on 1/1/20 per share. st, Inguinal issued an additional 20,000 shares of its common stock at $15 per mber 31, 2020, the Board of Directors of Inquinal paid a dividend of $0.75 per shares issued ad outstanding. When a corporation applies for a charter, they have to request how of common stock they wish to be authorized to have available to is So let's say that Dlonk Corp. applies for a charter and is authorize 1,000,000 common shares of stock. All corporations generally set a par value for the common stock (fe choose to issue no-par value common stock, so we will not conside feasible choice). Par value has no relationship AT ALL to the mark common stock, ever. Its only use is to set what is called the legal corporation. The legal capital of a corporation sets the minimum a assets under which the corporation can still operate and not be req liquidated. The only use for par value in accounting is for the issuance of con look at an example. Assume that Dlonk Corp. requests and is auth par value of $0.50 per share. If, on 2/1/17. Dlonk issues 10,000 ca $9 per share, the entry to record the issuance would look like this: 2/1/17 Cash Common Stock Additional Paid-In Capital - Common To record issuance of 10,000 shares of common stock Common stock credit = 10,000 shares x $0.50 par value = $5,000 APIC- Common credit = $90,000 - $5,000 = $85,000 (Please abbreviate Additional Paid-in Capital - Common to APIC At this point, Dlonk's legal capital is $5,000 (no. of common shares This entry illustrates how the problems in Spiceland in Chapter 2 a simplistic. For example, on page 55, Illustration 2.6, for Dress Rigt July 1, we see that the $60,000 in cash received for 6.000 shares was equal to the increase in the Common Stock account. We are the stock is no-par stock, but either it is no-par stock or the par valu $10 per share ($60,000/6,000 sh = $10) and that it was also issue For any problem I give you that relates to common stock issuance. par value and there will also be APIC -- Common amount. Notice also on Dress Right's Statement of Stockholders' Equity on that there is no column for APIC -- Common. However, almost all have a column in the Statement of Stockholders' Equity for both C APIC - Common. See page 1053, III 18-4, for a real-world Stateme Stockholders' Equity. Note that the column headed "Capital in Exc stands for APIC - Common. lies for a charter, they have to request how many shares vish to be authorized to have available to issue to investors. Corp. applies for a charter and is authorized to issue res of stock. ly set a par value for the common stock (few corporations value common stock, so we will not consider this as a alue has no relationship AT ALL to the market value of the only use is to set what is called the legal capital of the capital of a corporation sets the minimum amount of net corporation can still operate and not be required to be ue in accounting is for the issuance of common stock. Let's sume that Dlonk Corp. requests and is authorized to have a hare. If, on 2/1/17, Dlonk issues 10,000 common shares for to record the issuance would look like this: 90,000 ck id-In Capital -- Common uance of 10,000 shares of common stock 5,000 85,000 10,000 shares x $0.50 par value = $5,000 $90,000 - $5,000 = $85,000 itional Paid-In Capital -- Common to APIC -- Common) al capital is $5,000 (no. of common shares issued x par). w the problems in Spiceland in Chapter 2 are too on page 55, Illustration 2.6, for Dress Rights's transaction on $60,000 in cash received for 6,000 shares of stock se in the Common Stock account. We are not told that