Question

Brief Exercise 10-4 Record issuance of common stock (LO10-2) Gothic Architecture is a new chain of clothing stores specializing in the color black. Gothic issues 1,000 shares of its $1 par value common stock at $13 per share. Record the issuance of the stock. How would the entry differ if Gothic issued no-par value stock? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet K 1 2 Record the issuance of common stock above the par value Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal

Answer 1

Number of Shares 1000 Issues value (1000*13) 13000 Record the Issue of Common stock at $13 Par value Transaction General Journal Debit Credit 1 Cash 13000 Common Stock (1000*1) 1000 Paid-in capital in excess of par value Common Record the issuance of the stock ( is a no par stock) 12000 General Journal Debit Credit Date 2 Cash 13000 Common Stock 13000 Record the Issue of Common Stock at no par