Exercise 13-2 Accounting for par, stated, and no-par stock issuances LO P1 Rodriguez Corporation issues 10,000 shares of its common stock for $40,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $2 par value. The stock has neither par nor stated value. The stock has a $1 stated value.

Entries under 2$ par value.

Dr Cash   (2*10000)     20000

            Cr Share capital                                     20000

            Cr Share premium (40800-20000)      20800

         (To record share issue in excess of par and when par is at $2)

Entries under 1$ par value

    Dr   Cash (1 * 10000)                         10000

   Dr Share discount (40800-10000)   30800  

                    Cr Share capital                             40800

        ( To record share issue at discount )

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.