on june 1, pina colada corp. issues 3,850 shares of no-par common stock at a cash price of $5 per share. journalize the issuance of the shares assuming the stock has a stated value of $1 per share.

This journal entry is used to record the issuance of 3,850 shares of no-par common stock by Pina Colada Corp. on June 1st. The cash price per share was $5 while the stated value was $1 per share. The debit of $35,250 is equal to the total number of shares issued multiplied by the cash price per share, while the credit of $35,250 is equal to the total number of shares issued multiplied by the stated value per share.

This entry is a way to record the full cash received for the issuance of the stock, while also properly recording the value of the stock on the company’s books.

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