The journal entry to record common stock issued at its par value includes a:

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This is because when common stock is issued at its par value, the company receives cash (or other assets) equal to the par value of the stock. This cash is recorded as a debit to Cash (or another asset account) and as a credit to Common Stock, representing the shares issued. There is no impact on Retained Earnings because this account represents the accumulated earnings of the company and does not change with the issuance of new shares.

The Journal Entry to Record Common Stock Issued at Its