Asked by Jordanna Porter on Jul 30, 2024
Verified
Journalize the following independent transactions:
a) Casey Company sells 300 shares of $20 par-value common stock at $20.
b) Jacob Corporation sells 100 shares of $20 par-value common stock at $30.
c) Moss Inc. sells 40 shares of no-par common stock with a $20 stated value for $30 per share.
Par-value
The face value of a bond or stock as stated by the issuing company, which may differ from the market value.
No-par Common Stock
A type of common stock that does not have a par value assigned, representing an ownership interest in a corporation.
Stated Value
A value assigned to a share of stock by the corporation’s board of directors, which is an arbitrary value used for accounting purposes.
- Digest the process of issuing common and preferred shares in exchange for financial and non-financial considerations.
- Understand the treatment of stock issued at par, above par, and below par.
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Learning Objectives
- Digest the process of issuing common and preferred shares in exchange for financial and non-financial considerations.
- Understand the treatment of stock issued at par, above par, and below par.