What are my journal entries for Issuing shares of common stock and receiving money as net proceed from issue?
Here is the example. I am putting together a balance sheet and this is the information given: Dec 31, 2011
Issued $15000 shares of $1Par stock upon incorporation. Received $290,000 as net proceeds from the stock issue. Dividends of $3000 were declared last month and will be paid Feb 2012.
Debit cash $290,000, credit capital stock $15,000 credit paid in capital $275,000. To record the dividend – Debit retained earnings $3,000 credit Dividends payable $3,000.