Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. the stock has no stated value.

Promotion expenses $40,000

               To Common stock A/c $40,000

(Being the issuance of the shares is given to promoters is recorded)

Explanation:

The journal entries are shown below:

Promotion expenses $40,000

               To Common stock A/c $40,000

(Being the issuance of the shares is given to promoters is recorded)

Since the stock has no stated value so we do not consider the additional paid-in capital in excess of par value account

We only recorded the promotion expenses and the common stock account for $40,000

answer; ///retained

you don't if you paid you paid. it's like if i bought a computer and used it then i say idon't want it anymore so im gonna return it. you can't. unlkess you have your reciept