Concept #1: Issuing Par Value Stock Definitions

Concept #2: Issuing Par Value Stock at Par Value

Concept #3: Issuing Par Value Stock above Par Value

Additional Problems
Which account(s) would be increased with debits?     Purchase Discount        Common Stock            Bad Debt Expense a)           Yes                                  Yes                              No b)            No                                   Yes                             No c)            No                                   Yes                            Yes d)            No                                    No                            Yes e)           Yes                                    No                             No
A corporation sold 10,000 shares of $5 par value common stock for $40 per share. The journal entry to record the transaction will include: A) a credit to Gain on Sale of Common Stock for $350,000. B) a credit to Common Stock for $50,000. C) a credit to Common Stock for $400,000. D) a credit to Capital in Excess of Par Value for $35,000.
If the credit amount of an entry to record the sale of common stock for cash was not posted: a. Stockholders’ Equity would be understated b. Assets would be overstated c. Assets would be understated d. Stockholders’ Equity would be overstated
Which of the following reflects the impact of a transaction where $200,000 cash was contributed by stockholders in exchange for shares of stock? A. Assets and liabilities each increased $200,000. B. Assets and revenues each increased $200,000. C. Stockholders' equity and revenues each increased $200,000. D. Stockholders' equity and assets each increased $200,000.
A corporation issued for cash 100,000 shares of its $0.01 par value common stock for $450,000. Which of the following is the correct journal entry to record this transaction? a. Cash, debit, $450,000; Common Stock, credit, $450,000 b. Cash, debit, $450,000; Common Stock, credit, $45,000; Paid-in Capital, credit, $405,000 c. Cash, debit, $450,000; Common Stock, credit, $1,000; Paid-in Capital, credit, $449,000 d. Cash, debit, $450,000; Paid-in Capital, credit, $450,000
What is the correct entry for the sale of 200 shares of $10 par value preferred stock for $5,000? A. Dr. Cash $5,000; Cr. Preferred Stock $5,000 B. Dr. Cash $2,000; Cr. Preferred Stock $2,000 C. Dr. Preferred Stock $2,000,Contributed Capital in Excess of Par $3,000; Cr. Cash $5,000 D. Dr. Cash $5,000; Cr. Preferred Stock $2,000, Contributed Capital in Excess of Par $3,000 
The entry to record the issuance of 2,000 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $28,000 and a credit to Common Stock for a) $28,000 b) $20,000 and a credit to Gain on Sale of Common Stock for $8,000 c) $20,000 and a credit to Treasury Stock for $8,000 d) $20,000 and a credit to Paid-in Capital in Excess of Par Value—Common Stock for $8,000
The entry to record the issuance of 500 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $7,000 and a credit to Common Stock for a. $5,000 and a credit to Treasury Stock for $2,000. b. $5,000 and a credit to Paid-in Capital in Excess of Par Value—Common Stock for $2,000. c. $5,000 and a credit to Gain on Sale of Common Stock for $2,000. d. $7,000.
S Company issued 1,000 shares of common stock at $10 per share. If the stock has a par value of $4 a share, the journal entry to record the issuance would include a a. Credit to Common Stock for $4,000. b. Debit to Cash for $4,000. c. Credit to Paid-in-Capital in Excess of Par for $10,000. d. Debit to Retained Earnings for $6,000.
If common stock is issued for an amount greater than par value, the excess should be credited to a. Cash. b. Retained Earnings. c. Paid-in Capital in Excess of Par Value. d. Legal Capital.
First Watch, Inc. began its operations in 2006. During the year, shareholders paid in $200,000 in exchange for 40,000 shares of $1 par, common stock. For the 2006 year, First Watch reported net income of $200,000 and paid out $50,000 in dividends. Which of the following will be reported on the December 31, 2006 Balance Sheet? a. Retained Earnings, $350,000 b. Total Stockholders’ Equity, $310,000 c. Additional Paid-in-Capital, $200,000 d. Common Stock, $40,000
On June 1, W Company issued for cash 10,000 shares of $20 par common stock at $24. On July 1, it issued for cash 5,000 shares of $ 10 par preferred stock at $14. Required: a) Journalize the entries for the issuance of stock b) What is the total amount invested (total paid-in capital) by stockholders as of July 1.
ABC Company has the following authorized stock: Common stock: 1.00 par value, 100,000 shares. On 1/11/15, ABC Company issued 10,000 shares of common stock for $5 per share (cash). What is the credit to common stock?  
BC Company has the following authorized stock: Common stock: 1.00 par value, 100,000 shares. On 1/11/15, ABC Company issued 10,000 shares of common stock for $5 per share (cash). How much cash does the company receive?