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4 April, 01:17

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 $17 per share. Record the issuance of the stock. How would the entry differ if Gothic issued no-par value stock

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  1. 4 April, 02:18
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    Answer and Explanation is below

    Explanation:

    Gothic Architecture

    Number of shares 1,000

    Issued value (1,000*$17) 17,000

    1. We are going to Record the issuance of common stock at $17 per value because Gothic issues the 1,000 shares of its $1 par value common stock at $17 per share.

    Dr Cash (1000 x 17) 17,000

    Cr Common Stock (1000 x 1) 1,000

    Paid in Capital in excess of per value Common 16,000

    (17,000-1,000)

    2. We are going to Record the issuance of the stock (no par value) if Gothic issued no-par value stock by Debiting Cash with 17,000 and Crediting common stock with the same amount.

    Dr Cash 17,000

    Cr Common stock 17,000
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