JournaldrillIssuing common stock
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Lumen Robotics Inc. issues 15,000 shares of $1 par value common stock for $18 per share in cash.
What this exercise teaches
Cash is 15,000 x $18 = $270,000 and Common Stock is 15,000 x $1 = $15,000. The excess, $270,000 - $15,000 = $255,000, is paid-in capital in excess of par.
A hint if you get stuck
Par value goes to the stock account and anything received above par goes to a separate paid-in capital account.
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