Question

To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with no-par value. Required: 1. Complete the table below, indicating the account, amount, and direction of the effect for the issuance of the no-par value stock at $50. 2. Prepare the journal entry for the issuance of the no-par value stock at $50. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the table below, indicating the account, amount, and direction of the effect for the issuance of the no-par value stock at $50. (Enter any decreases to account balances with a minus sign.). Assets Liabilities Cash 50,000 Stockholders' Equity Common Stock Additional Paid-In Capital, Preferred Stock 0X

Answer 1

Answer

--Requirement 1

ASSETS		LIABILITIES		STOCKHOLDER's EQUITY
Cash	$50,000			Common Stock	$50,000

--Requirement 2

Transaction	General Journal	Debit	Credit
1	Cash [1000 shares x $ 50]	$50,000
	Common Stock [1000 shares x $ 50, no par]		$50,000

--Note: Common Stock issued here DOES NOT HAVE a PAR VALUE, hence 'Paid in Capital in excess of Par' account does not need to be considered.