byufan
Nov 11, 2010, 01:07 PM
What is the journal entry if the owner of the company invests $1400 into a checking account for the business in exchange for 200 shares of common stock?
Just Looking
Nov 11, 2010, 01:22 PM
Do you know the par value of the common stock?
Just Looking
Nov 11, 2010, 01:30 PM
It looks like you are gone, but let me just give you the following examples. If the par value is $7.00 per share (200 shares at $7 = $1400):
Cash.....................................$1,400
Common Stock....................................$1,400
If the par value is, for example, $5.00 per share (200 shares at $5 - $1000):
Cash.....................................$1400
Common Stock....................................$1000
Additional paid in capital........................$ 400