caesar cruise lines, inc. issues 6,000 shares of common stock with a $2 par value. the issue price of the stock is $21 per share, and th ecompany paid an undwriter $500 in stock issue costs. what is the journal entry required to record the issuance of the shares

Question

Business

Derick Shepherd

21 March, 00:10

caesar cruise lines, inc. issues 6,000 shares of common stock with a $2 par value. the issue price of the stock is $21 per share, and th ecompany paid an undwriter $500 in stock issue costs. what is the journal entry required to record the issuance of the shares

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Answers (1)

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Sean Mcguire · Answer 1

Journal Entry

Explanation:

The Journal Entry is shown below:-

Cash Dr, $125,500

(6,000 * $21 - $500)

To common stock 6,000

To Additional paid in capital $119,500

in excess of par-common

(Being the issuance of the shares is recorded)