Swarten Corp. issued 600 shares of no-par common stock for $8,200. Prepare Swarten’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share.

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Swarten Corp. issued 600 shares of no-par common stock for $8,200. Prepare Swarten’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share.

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(a)  Cash 8,200
             Common Stock 8,200

 

(b)  Cash 8,200
             Common Stock 1,200
             Additional Paid-in Capital – CS 7,000
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