Recording the sale of common stock.
To expand operations, Aragon Consulting issued 100,000 shares of previously unissued stock with a par value of $1. The selling price for the stock was $75 per share. Record the sale of this stock. Would your answer be different if the par value was $2 per share? If so, record the sale of stock with a par value of $2.© BrainMass Inc. brainmass.com June 3, 2020, 6:43 pm ad1c9bdddf
If the sale of stock happens at a price obove the apr value, then we par value is recorded separately and the excess of par is recorded separately.
Case 1 - Par Value is $1 and excess over par ...
The solution provides the journal entries for sale of stock.