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:
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Common stock, $ 2.00 par value |
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Authorized: 6,000 shares |
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Issued: 4,000 shares |
$ 8,000 |
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Paid in capital in excess of par |
4,000 |
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Retained earnings |
26,500 |
Requirement
1. Journalize the company’s issuance of the stock for cash.