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

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When common stock is issued at its par value, the journal entry includes a debit to Cash (or another asset account) for the amount received and a credit to Common Stock for the par value of the shares issued. The par value represents the legal capital of the company which is the minimum amount that must be retained in the business to protect the interests of the shareholders. There is no need to credit Paid-in Capital-Par Value or Paid-in Capital in Excess of Par-Common as the stock is being issued at its par value and not at a premium or discount. Retained Earnings are not affected by the issuance of common stock at its par value.

The Journal Entry to Record Common Stock Issued at Its