Stock for Cash – Financial Accounting Transaction Stock Part Value for Cash

The financial accounting transaction of issuing stock for cash is a corporate accounting transaction similar to a transaction for a sole proprietorship or partnership of owner investments. The corporation issues stock to receive capital investment from the owners, the stockholders. The journal entry for the sale of stock will include a debit to cash and a credit to common stock. However the credit to common stock will not equal the cash received if the stock has a set par value. We will credit the difference between the cash received and part value to Paid in capital in excess of par value. The financial transaction for the issuance of stock will not effect the income statements.
For more accounting information see website.



Leave a comment

Your email address will not be published. Required fields are marked *