Common stock should be recognized on its settlement date (i.e. , the date the proceeds are received and the shares are issued).As you saw in the video, stock can be issued for cash or for other assets. This video shows how to record a journal entry for a stock issuance. Request for Journal Entry. Reference: District Business Procedure 3.23. This section demonstrates how to account for stock transactions. Stock issued for cash Corporations may issue stock for cash. Issuing common stock is how a corporation can generate capital, generate money, for use in the company. Any receipts not used (original or accounting copy) also shall be retained in the receipt book. 2.