Swarten Corporation issued 690 shares of no-par common stock for $9,120. Prepare Swarten's...

Question:

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
(a)
(b)

Common Stock:

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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