Swarten Corporation issued 690 shares of no-par common stock for $9,120. Prepare Swarten's journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $4 per share.
|No.||Account Titles and Explanation||Debit||Credit|
Common stock is a representation of partial ownership in a company. No-par value stock is the stock that has not been assigned a value per share. Stated value stock is assigned a value at issuance.
Answer and Explanation:
The question states the following:
- 690 shares of no-par common stock for $9,120
(a) Journal Entry when the stock has no stated value:
When the stock...
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from Finance 101: Principles of FinanceChapter 8 / Lesson 1
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