How would I prepare a journal entry to record "sold 10,000 shares of common stock at $16"?

Answer by  RobertB (111)

A journal entry for the selling of stocks is to debit the cash account for $160,000 and to credit the investment asset account for $160,000.

Answer by  technogeek (6640)

You would credit the shares that were sold and you would debit the amount of cash that came in. Since I do not know how your chart of accounts is laid out, I cannot tell you the debit account, but the credit account would be cash or stock sales revenue.

Answer by  richmiller3214 (138)

To record the sale of 10,000 shares of common stock at $16/share you must determine what the total proceeds amount to and if the value of the stock is above par value. In this case the dollar amount received is $160,000. The entry looks like this: Debit Credit Cash $160,000 Common Stock $160,000

Answer by  Siri (81)

If the shares are sold for par value without any premium, then (Debit) Cash / Bank 160,000 (Credit) Common Stock 160,000