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Typical Stockholders Equity Journal Entries

1. To issue Common stock at par value or no par value for cash

AccountDebitCredit
Cashtk 00000
Common Stock tk 00000

2. To issue Common stock above par value for cash

AccountDebitCredit
Cashtk 00000
Common Stock tk 00000
APIC - Common Stock tk 00000
*APIC = Additional paid in capital or premium

3. To issue Common stock above par value for property

AccountDebitCredit
Property (fair value)tk 00000
Common Stock tk 00000
APIC - Common Stock tk 00000

4. To issue Common stock above par value for property

AccountDebitCredit
Expenses (fair value)tk 00000
Common Stock tk 00000
APIC - Common Stock tk 00000

5. A cash dividend is declared

AccountDebitCredit
Retained Earningtk 00000
Dividents Payable tk 00000

6. A cash dividend is paid

AccountDebitCredit
Dividents Payabletk 00000
Cash tk 00000

7. A stock dividend is declared

AccountDebitCredit
Retained earningstk 00000
Common stock dividends distributable tk 00000
APIC – Common stock tk 00000

8. A stock dividend is issued

AccountDebitCredit
Common stock dividends distributabletk 00000
Common stock tk 00000
Stockholders are usually called Shareholders, so stockholders equity becomes shareholders equity. In addition, the equivalent of Common stock is termed Ordinary shares, and Preference Stock becomes Preferred shares.

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