Answer:
The journal entry to record this transaction would be:
Dr Cash 50,000
Cr Common stock 1,000
Cr Additional paid in capital 49,000
this transaction basically increases current assets (cash account) and increases equity (common stock and additional paid in capital accounts).
If the par value was $2 per stock, then the journal entry should have been:
Dr Cash 50,000
Cr Common stock 2,000
Cr Additional paid in capital 48,000
the difference is that common stock account will increase by $2,000 instead of $1,000, and additional paid in capital account will increase by only $48,000. But both accounts are part of stockholders' equity,
Journal entry is the recording of each monetary business transaction in the books of accounts in chronological order. The journal entry uses a dual entry bookkeeping system, as it gives a dual effect of each business transaction.
The analysis of the accounting equation effect is as follows:
The journal entries are recorded in the image attached below:
To know more about journal entries, refer to the link:
https://brainly.com/question/20421012
