Homework SourseHow would I record this question below under Assets liabili
How would I record this question below under Assets = liabilities + stockholders equity? Also what would the journal entry be?
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.
Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance
| How would I record this question below under Assets = liabilities + stockholders equity? Also what would the journal entry be? To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. |
Solution
Solution
Journal entry
In assets= liabilities+stockholders equity it wii be shown as under;-
+50000
Cash
=
+
+1000
Common stock
+49000 additional
Paid in capital,
Common stock
Par value of common stock will be credited in accountname common stock and additional amount received Will be credited in additional paid up capital.
| Account | debit | credit |
| Cash | 50000 | |
| Common stock | 1000 | |
| Additional paid up capital | 49000 |
