Issuing Par Value Stock

Par value stock can be issued at par, at a premium (above par), or at a discount (below par). Cash or noncash assets are received in exchange for stock.

Issuing Par Value Stock at Par

When common stock is issued at par value, we record both the asset(s) received and the par value stock issued. To illustrate, the entry to record Dillon’s issuance of 30,000 shares of $10 par value stock for $300,000 cash on June 5, 2017, follows.