Darman Company issued 700 shares of no-par common stock for $7,700.Which of the following journal entries would 1.

Question

Quizplus · Accepted Answer

The journal entry to record the issuance of no-par common stock is:

Dr. Cash (amount received)
Cr. Common Stock (par value or entire proceeds if no-par)

Since the stock in this scenario is no-par, we will credit the entire proceeds:

Dr. Cash $7,700
Cr. Common Stock $7,700

Darman Company Issued 700 Shares of No-Par Common Stock for $7,700.Which