Answer:
False
Explanation:
In case of the no par common stock, if the stated value is issued for cash the following journal entry would be required which is given below
Cash A/c Dr XXXXX
To Common Stock XXXXX
To Additional Paid-in Capital in excess of stated value - Common Stock XXXXX
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
The excess amount of stated value should be transferred to additional paid-in capital
