Issuing stock and interpreting stockholders’ equity
Scifilink.com issued stock beginning in 2012 and reported the following on its balance sheet at December 31, 2012:
|
Common stock, $ 2.00 par value |
|
|
Authorized: 6,000 shares |
|
|
Issued: 4,000 shares |
$ 8,000 |
|
Paid-in capital in excess of par |
4,000 |
|
Retained earnings |
26,500 |
Requirement
- Journalize the company’s issuance of the stock for cash.