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30 October, 06:55

Western Wear Clothing issues 3,000 shares of its $0.01 par value common stock to provide funds for further expansion. Assuming the issue price is $11 per share, record the issuance of common stock. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

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  1. 30 October, 10:14
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    The journal entry for the issuance of the common stock is shown below:

    Explanation:

    Cash A/c ... Dr $33,000

    Common Stock A/c ... Cr $30

    Paid in Capital A/c ... Cr $32,970

    Working Notes:

    Cash = Number of shares * Issue Price

    = 3,000 * $11

    = $33,000

    Common Stock = Number of Shares * Par Value

    = 3,000 * $0.01

    = $30

    Paid in Capital = Cash - Common stock

    = $33,000 - 30

    = $32,970
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