Identify the number of common shares outstanding at the time the dividend was declared. Common stock should be recognized on its settlement date (i.e., the date the proceeds are received and the shares are issued). This video shows how to record a journal entry for a stock issuance. If you have a corporation in California you're required to issue shares of stock - we break down what that means and what you need to do. This section demonstrates how to account for stock transactions. Stock issued for cash. This video explain accounting for common stock. Common stock is a security that represents ownership in a corporation. It is these shares of stock that designate ownership in a corporation.