Q3SE

Question

Journalizing issuance of stock—no-par

Wolcott Corporation issued 5,000 shares of no-par common stock for $2 per share on January 13. Record the stock issuance

Step-by-Step Solution

Verified

Answer

Cash will be debited, andCommon stock- No par value will be credited with $10,000.

1Step 1: Basic Introduction-

Common stock:Common stock represent the share of the ownership which do not have preferred rights. In general, common stock holder receive the maximum profit share of the company.

2Step 2: Journals-

Date	Transaction	Debit	Credit
January 13	Cash (5,000 * $2)	$10,000
	Common stock- No par value		$10,000
	To record issue of common stock

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