Journal Entry for Issuing Common Stock for Cash

Journal Entry for Issuing Common Stock for Cash

Journal Entry for Issuing Common Stock for Cash is easy and simple if other factors are not considered. We discuss and give examples of how to record issuance of common stock for cash. A company can issue common stock to its investors directly, or it can issue stock indirectly through an investment banking firm that specialized in bringing securities to the attention of prospective investors.

Journal entry for issuing common stock for cash:

Example:

Wikitekkee Corporation started business by issuing 100,000 shares of common stock for $1,000,000.

The Journal Entry to record this transaction:

Cash—————Dr. 1,000,000

Common Stock—————–Cr. 1,000,000

(For Issuing common stock for cash)

Related reading:

1. The Accounting Process with Excel Templates
2. Intermediate Accounting, 10th Edition, by Spiceland et al.