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If Lantz Company issues 10,000 shares of $5 par value common stock for $210,000

          If Lantz Company issues 10,000 shares of $5 par value common stock for $210,000
        

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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If Lantz Company issues 10,000 shares of $5 par value common stock for $210,000
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Transcript

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00:01 Common stock will be credited for 50 ,000 when a company issues common stock it receives cash from investors in exchange for ownership in the company in this case lance company issued 10 ,000 shares of five dollars par value common stock for $210 ,000 par value is the minimum price at which a share of stock can be sold and in this case the par value of the stock was five dollars per share to record the issuance of the stock the company will debit cash for the amount received which was $210 ,000 and they would credit common stock for the par value of the shares received which is fifty thousand dollars because five dollars per share times the ten thousand shares is fifty thousand the remaining amount received above the par value is recorded as additional paid -in capital the remaining which represents the amount investors are willing to pay above the minimum price for the shares...
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