Par value gives the accountant a constant amount at which to record capital stock issuances in the capital stock accounts. Common stock should be recognized on its settlement date (i.e., the date the proceeds are received and the shares are issued). Journalize the transactions completed during December of the current year. When issuing common stock for non-cash assets or services, the transaction is recorded at the fair market value of what is received. An allowance for doubtful accounts is maintained for the utility and other miscellaneous receivables. A company issues common stock to raise money, so the debit will always be to cash. Stock Issuance: ✓ Common Stock ✓ Journal Entry ✓ Preferred Stock ✓ Example ✓ Shareholders' Rights ✓ Advantages. Prepare the general journal entry to record this transaction. Stock Based Compensation (SBC) is recognized as a non-cash expense on the income statement under US GAAP.