Scarecrow, Inc., issues 50,000 shares of $2 par value common stock. The shares are sold for $25

Question:

Scarecrow, Inc., issues 50,000 shares of $2 common stock. The shares are sold for $25 per share. Prepare the journal entry to record the issuance of the stock.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...