Question

caesar cruise lines, inc. issues 6,000 shares of common stock with a $2 par value. the issue price of the stock is $21 per share, and th ecompany paid an undwriter $500 in stock issue costs. what is the journal entry required to record the issuance of the shares

Answer 1

Answer:

Journal Entry

Explanation:

The Journal Entry is shown below:-

Cash Dr,                                     $125,500

(6,000 × $21 - $500)                                        

    To common stock                            6,000

     To Additional paid in capital          $119,500

      in excess of par-common

(Being the issuance of the shares is recorded)