The following was in the financial press pertaining to Jacks

The following was in the financial press pertaining to Jackson International: April 1, 2015-Jackson International\'s (JCK) stock was sold for $23 per share during its opening day of trading. Jackson sold 50 million shares at its IPO. Record the issuance of stock, assuming the common stock had a par value of $1 per share.$23 is the issuance price.

Solution

Entry for issuance of common stock:-

Cash Dr. 1,150 Miln

To Common stock at $1 Par (1*50) 50 Million

To Capital in excess of par (50*22) 1,100 Million