Thoman Products, Inc., sold 21,250 shares of common stock to stockholders at the time of its incorporation.

Question:

Thoman Products, Inc., sold 21,250 shares of common stock to stockholders at the time of its incorporation. Thoman 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.

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.

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.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...