no par value stock

no par value stock - On March 1 Venus Corporation issued...

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Issuing no-par value stock If no=par value is issued, the entire proceeds are credited to… On March, Venus Corporation issued 10,000 shares of No par common stock for $11 per share Journal entry DEBIT cash 110,000 CREDIT common stock 110,000 Directors can assign no par stock a “stated value”. Stated value works in the same manner as par value Issuing common stock at premium On march 1, Venus corporation issued 10,000 shares of $10 par common stock for $12 per share Journal entry to record the issue DEBIT cash ($12 X 10,000 shares = 120,000 ) CREDIT common stock ($10 X 10,000 = ) 100,000 Only to the extent of par value CREDIT paid-in capital in excess of par common stock (120,000 – 100,000) = 20,000 PIC is an equity account with a normal credit balance Issuing common stock in exchange of non cash assets
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Unformatted text preview: On March 1, Venus Corporation, issued 10,000 shares of $10 par common stock in exchange of land value at $50,000 and Building valued at $90,000. Journal entry to record the issue DEBIT land 50,000 DEBIT building 90,000 CREDIT common stock ($10 X 10,000) = 100,000 CREDIT PIC in excess of par, common stock (140-100) 40,000 Issuing common stock in exchange of services to form the corporation On march 1, Venus corporation issued 800 shares of $10 par common stock to organizers in exchange of services valued at $12,000. Journal entry to record the issue: counter effect DEBIT organization expenses 12,000 CREDIT common stock ($10 X 800) – 8,000 CREDIT PIC in excess of par common stock (12,000 – 8,000) 4,000...
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