On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.© BrainMass Inc. brainmass.com June 3, 2020, 6:14 pm ad1c9bdddf
The par value goes to capital stock and the difference between the par value and the issue price goes to Additional paid-in Capital.
in May 2 transaction, Par Value is $5 and premium is $7. The entry would be
Common Stock 60,000 ( 12,000 ...
The solution explains the correct entry to be made for some capital stock transactions undertaken by Art Wyatt Corporation