Question: On January 15 2009 Tallyho Corp incorporated in Georgia and

On January 15, 2009, Tallyho Corp. incorporated in Georgia and was authorized to issue 3,000,000 shares of common stock. In an initial public offering, Tallyho sold 1,350,000 shares of common stock for $18 per share.
(a) Prepare the journal entry to record the sale of the stock if Tallyho’s common stock
(1) Has a $0.50 par value.
(2) Has a $3.00 par value.
(3) Is no-par value.
(b) Explain why selling common stock at more than par value does not increase net income for the period.

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  • CreatedMarch 27, 2015
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