Question
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Analyze the accounting equation effects and record the journal entry for the stock issuance. Would your answer be different if the par value were $2 per share? If so, analyze the accounting equation effects and record the journal for the stock issuance with a par value of $2.
| Assets | = | Liabilities | + | Stockholder's Equity | ||||||||
| Amount | Amount | Amount | ||||||||||
| DB | CR | |||||||||||
| A | ||||||||||||
| Assets | = | Liabilities | + | Stockholder's Equity | ||||||||
| Amount | Amount | Amount | ||||||||||
| DB | CR | |||||||||||
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Financial Accounting For MBAs
Authors: Peter D. Easton, John J. Wild, Robert F. Halsey, Mary Lea McAnally
3rd Edition
0978727932, 978-0978727932
