Received 70,000 for the sale of 50,000 shares of $1 par value common stock. What is the journal entry:confused:

DR Bank account--------------70,000
Cr Paid-Up Capital account------------50,000
Cr Premium on shares acccount------20,000

Being $ 70,000 for the sale of 50,000 shares of $1 par value.

Nope, I think the J/E will be as followed:
Dr: Cash... 70,000
Cr: Common share... 70,000
You only calculate the difference when you buy back the shares. Which means you have to calculate the average price of shares then decide the amount of common share you give up.
In this case, whether the reacquisition price of shares is higher or lower the average price of shares, you need the contribution surplus account. But I'm still not very clear about Contribution surplus therefore I can't give you further information.

Nope, I think the J/E will be as followed:
Dr: Cash.....70,000
Cr: Common share.....70,000
You only calculate the difference when you buy back the shares. Which means you have to calculate the average price of shares then decide the amount of common share you give up.
in this case, whether the reacquisition price of shares is higher or lower the average price of shares, you need the contribution surplus account. But I'm still not very clear about Contribution surplus therefore I can't give you further information.

Thank You - Cynthia514 that journal entry causes the genenal journal to balance. I am very happy for your response to this question. :)

Nope, I think the J/E will be as followed:
Dr: Cash.....70,000
Cr: Common share.....70,000
You only calculate the difference when you buy back the shares. Which means you have to calculate the average price of shares then decide the amount of common share you give up.
in this case, whether the reacquisition price of shares is higher or lower the average price of shares, you need the contribution surplus account. But I'm still not very clear about Contribution surplus therefore I can't give you further information.

Good try but not quite true, as I have told you before Common Stock is at par value and the rest of the proceeds go to Additional Paid in Capital.