The journal entries to record the common stock transactions under the two scenarios are as follows:
a) Assuming that the common stock has a par value of $4 per share:
Jan. 10 Debit Cash $104,000
Common Stock $104,000
July 1 Debit Cash $495,000
Common Stock $220,000
Additional Paid-in Capital $275,000
b) Assuming that the common stock is no-par with a stated value of $3 per share
Jan. 10 Cash $104,000 Common Stock $78,000 Additional Paid-in Capital $26,000
July 1 Cash $495,000 Common Stock $165,000 Additional Paid-in Capital $330,000
There is no major difference between the par value and the stated value of the common stock, except as follows.
While the stated value is assigned when there is no par value for accounting purposes, the par value is assigned when the shares are authorized for issuance.
The two function as the face value of the shares which can be compared to the market value to discover if there is additional paid-in capital or not.
a) Jan. 10 Cash $104,000 Common Stock $104,000
July 1 Cash $495,000 Common Stock $220,000 Additional Paid-in Capital $275,000
b) Jan. 10 Cash $104,000 Common Stock $78,000 Additional Paid-in Capital $26,000
July 1 Cash $495,000 Common Stock $165,000 Additional Paid-in Capital $330,000
Learn more about recording stock issuance transactions at https://brainly.com/question/17201601
