Question

Record the issuance of additional shares for $1,469 cash; total par value was $1 and the rest was in excess of par value.

Answer 1

Answer:

cash                       1,469 debit

  common stock                        1 credit

  additional paid-in             1,468 credit

--to record issuance of shares in exchange of cash--

Explanation:

We are given the fact that total par value of the shares is $1

thus, the remained will be additional paid-in excess of Common stock.

We debit the cash received as it is an asset

Then, we credit both, common stock and additional paid-in excess of Common Stock as they are equity accounts.