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    pennyaf's Avatar
    pennyaf Posts: 1, Reputation: 1
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    #1

    Dec 6, 2013, 10:35 AM
    Preffered stock
    How do you journalize the following:

    Corning Co. isued 4,000 shares of no par value preferred stock (stated value - $20) for cash at $22 a share
    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
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    #2

    Dec 6, 2013, 11:50 AM
    Normally, stock issued at no par value would be recorded at the amount received i.e.

    Dr Bank (with proceeds)
    Cr Stock (with the same amount)

    but, because in this case a stated value ($20) has been given, then this basically gives a par value after all. So you would:

    Dr Bank (with proceeds)
    Cr Stock (4000x$20)
    Cr Additional paid in Capital (4000x$2)
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