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Accounting for Stock Transactions

Accounting for Stock Transactions - share The sale of the...

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Accounting for Stock Transactions This section demonstrates how to account for stock transactions. Stock issued for cash Corporations may issue stock for cash. Common stock.  When a company such as Big City Dwellers issues 5,000 shares of its $1 par value  common stock at par for cash, that means the company will receive $5,000 (5,000 shares 
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Unformatted text preview: share). The sale of the stock is recorded by increasing (debiting) cash and increasing (crediting) common stock by $5,000. General Journal Date Account Title and Description Ref. Debit Credit 20X0 June 1 Cash 5,000 Common Stock 5,000 Sale of stock...
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