Recording the Sale of Common Stock
Yellow Company, a food coloring manufacturer that provides its products to large processed-food corporations, issues 48,000 shares of common stock (par value $20) for $30 per share.
Required:
Prepare the necessary journal entry to record this transaction. If an amount box does not require an entry, leave it blank.
Cash __ 0
Common Stock 0 _
Additional Paid-In Capital-Common Stock 0 _____

Journal entry can be defined as a process of organizing the financial records of a company by systematically recording all the financial transactions. The financial transactions are recorded in a summarized manner. A journal entry is a record of a business's financial transactions kept in its accounting books. An accurate date, the amounts to be debited and credited, a description of the transaction, and a special reference number are all components of a properly documented journal entry.

Journal entries are as follows:

Cash A/c....Dr. $14,40,000 (48000*30)

Common Stock A/c....Cr. $9,60,000 (48000*20)

Paid in capital in excess of par-common stock $4,80,000

Learn more about journal:

https://brainly.com/question/27159868

#SPJ4