How many shares of common stock does ABC issue for cash?

Company ABC issues 1,000 shares of common stock for the cash. With a par value of $ 1, the common stock is issued for $ 100 per share. Please prepare the journal entry of the common stock issue for cash. The company issues common stock for cash and the issue amount is more than the par value.

What does it mean to issue a stock?

“Issue” means to sell the shares of stock for the first time. If the company issues only one type of stock, it is common stock. The investors become owners of the company and are called stockholders. A journal entry must be recorded when a corporation issues stock. Issued 15,000 shares of $10 par common stock for $10 per share.

What is the difference between cash and common stock?

The other side of the transaction is the cash as the company issues stock for cash. The journal entry is debiting cash and credit common stock, additional paid-in capital. The cash record will depend on the amount that company sells the stock. The common stock amount is the par value stated on the stock.