In 2011, Calton Inc. had 100,000 shares of $1.50 par value common stock outstanding. Calton issued 100,000

Question:

In 2011, Calton Inc. had 100,000 shares of $1.50 outstanding. Calton issued 100,000 stock rights. Five rights, plus $50 in cash, are required to purchase one new share of Calton . On the date the rights were issued, Calton was selling for $55 per share.
What entries must Calton make to record the issuance of the stock rights?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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,...