Answer:
Hi there!
The journal entry will be:
C.
Cash (debit) $1,250,000
Common Stock (credit) $1,250,000
Explanation:
As no-par value stock is a share that have been issued without a par value listed on the face of the stock certificate, just multiply the number of shares issued by the issue price per share to calculate the total proceeds from issuing the no-par common stock.
C. Journal Entry Date Accounts Debit Credit Cash 1,250,000 Common Stock 1,250,000
Spirit World, Inc., issued 250 comma 000 shares of no-par common stock for $ 5 per share. The stated value by management is $ 5 per share. Spirit World, Inc. record the following debits and credits to recognize the transaction:
Entry Date 1,250.000
Common stock 1,250.000
Agio Common Stock 1,250.000
Note that the stated value replaces the nominal value, used to measure the Common Stock account. Agio Common Stock reports the difference in the amount paid by shareholders than the stated value.
What if the management of Spirit World, Inc. does not set the value of these shares?
Entry Date 1,250.000
Common stock 1,250.000
If no value is stated, the Common Stock account is credited with the amount deposited by the shareholders.
How to Calculate Earnings Per Share (EPS) Earnings per share is the amount of income earned in one period for each share outstanding.
Cash Flow for Shareholders :
If you buy shares, you can get cash in two ways, namely:
Like bonds, stock prices are the present value of expected cash flows.
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Common Stock https://brainly.com/question/13513598
Journal Entry https://brainly.com/question/13513598
Details
Class: High School
Subject: Business
Keywords: Journal Entry, Common Stock, no-par
