Valdez Manufacturing sold 20,200 shares of common stock to stockholders at the time of its incorporation Valdez received $24 40 per share for the stock Required 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 Cash Accounts Payable Accounts Receivable Additional Paid In Capital Common Stock Cash Common Stock Common Stock Accounts Payable Cash Common Stock Retained Earnings Treasury Stock Additional Paid In Capital Common Stock Accounts Receivable Additional Paid In Capital Common Stock Additional Paid In Capital Preferred Stock Cash Retained Earnings (Record sale of common stock) Feedback 1 When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity 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 Cash Accounts Receivable Additional Paid In Capital Common Stock Cash Common Stock Retained Earnings Common Stock Accounts Payable Cash Common Stock Preferred Stock Treasury Stock Additional Paid In Capital Common Stock Accounts Receivable Additional Paid In Capital Common Stock Additional Paid In Capital Preferred Stock Cash Retained Earnings (Record sale of common stock) Feedback 2 When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity 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 Accounts Receivable Additional Paid In Capital Common Stock Cash Common Stock Retained Earnings Accounts Receivable Additional Paid In Capital Common Stock Cash Common Stock Retained Earnings (Record sale of common stock) Feedback 3 When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity 4 Conceptual Connection How do the different par values affect total contributed capital and total stockholders' equity The different par values increase increase decrease have no effect on total capital stock or total stockholders equity

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Posted on Sep 10, 2024

Valdez Manufacturing sold 20,200 shares of common stock to stockholders at the time of its incorporation. Valdez received $24.40 per share for the stock. Required:

Valdez Manufacturing sold 20,200 shares of common stock to stockholders at the time of its incorporation. Valdez received $24.40 per share for the stock.

Required:

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.

	Cash Accounts Payable Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock
	Common Stock Accounts Payable Cash Common Stock Retained Earnings Treasury Stock
	Additional Paid-In Capital-Common Stock Accounts Receivable Additional Paid-In Capital-Common Stock Additional Paid-In Capital-Preferred Stock Cash Retained Earnings
	(Record sale of common stock)

Feedback

1. When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity.

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.

	Cash Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock Retained Earnings
	Common Stock Accounts Payable Cash Common Stock Preferred Stock Treasury Stock
	Additional Paid-In Capital-Common Stock Accounts Receivable Additional Paid-In Capital-Common Stock Additional Paid-In Capital-Preferred Stock Cash Retained Earnings
	(Record sale of common stock)

Feedback

2. When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity.

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.

	Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock Retained Earnings
	Accounts Receivable Additional Paid-In Capital-Common Stock Cash Common Stock Retained Earnings
	(Record sale of common stock)

Feedback

3. When companies sell common or preferred stock to raise capital, the resulting ownership claims are recorded in the capital stock section of stockholders' equity.

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

The different par values increase