Question: On September 1, 2017 Justin Highend Vehicles a New York based sole proprietorship needed funds to expand to New Jersey and Connecticut so the company incorporated in New York State. New York State, by its charter, authorized Justin Vehicles to issue 20,000 shares of $50 par value, preferred stock and 50,000 shares of no-par common stock. The Board of Directors assigned a $0.50 stated value to the common stock.
Prepare journal entries to record the following transactions
a) On Dec. 3, 2017 the 50,000 no-par common stock were sold for cash at a market price of $15 per share