Common Stock Issued With Par Value Vs No Par Value Accounting Detailed

Accounting for the issuing common stock with par value versus no par value, issuing with par value creates a liability where stockholders equity can not be reduced below the par value of the stock for dividend payments or thru any other contra equity account, when issuing with no par value APIC (Additional Paid In Capital) does not exist full amount is recorded in the common stock account, example includes the accounting journal entries (T accounts) for common stock equity accounts and stock issuing costs as organizational costs amortized as an expense, detailed accounting calculations based on number of shares issued, par value and stock price along with recorded balance sheet and income statement journal entries by Allen Mursau