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During its first year of operations, Martinez Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 25,800 shares for cash at $6 per share. July 1 Issued 54,000 shares for cash at $8 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $6 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.

Respuesta :

Journalize the transactions par value of $6 per share is, 108000 and no-par with a stated value of $3 per share is,  270000.

What does common stock mean?

  • A security that symbolizes ownership in a firm is called common stock.
  • Common stock owners choose the board of directors and cast ballots for corporate rules.
  • Long-term rates of return are often higher with this type of stock ownership.

What is an example of a common stock?

  • For instance, investors will receive $0.50 for each ordinary share they own if a corporation announces a dividend of $10 million and has 20 million shareholders.

According to the question:

(a) Journalize the transactions, assuming that the common stock has a par value of $6 per share.

D: Cash 154800.

C: common stock 154800.

D: Cash 432000.

C: Common stock 324000.

C: Paid-in Capital in Excess of Par Value-Common Stock 108000.

(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.

D: Cash 154800.

C: Paid-in Capital in Excess of Stated Value-Common Stock 77400.

C: Common Stock 77400.

D: Cash 432000.

C: Common Stock 162000.

C: Paid-in Capital in Excess of Stated Value-Common Stock 270000.

Learn more about Common Stock here:

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