Job Inc. owns 20,000 shares of No job Company which it bought in 2005. No job's total

Question:

Job Inc. owns 20,000 shares of No job Company which it bought in 2005. No job's total stockholders' equity is as follows:

Common stock, $20 par ............$500,000

Additional paid in capital ............ 200,000

Retained earnings ............... 200,000

Total common equity .............. $900,000

No job issues 5,000 previously unissued shares of common stock in the market for $50 per share.

Required:

Assume outsiders buy the stock. What journal entry is required by Job?

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...