Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. A company issues common stock to raise money, so the debit will always be to cash.In this session, I explain issuing stock for cash and noncash consideration. Upon issuance, common stock is recorded at par value with any amount received above that figure reported in an account such as capital in excess of par value. How do I add common stocks to the cash balance on a balance sheet? This video reviews three scenarios: 1) Issuing common stock for cash. 2) Issuing preferred stock for cash. Common stock is primarily a form of ownership in a corporation, representing a claim on part of the company's assets and earnings. Common stock is a kind of security that represents ownership in a company. A stockholder or shareholder is someone who owns shares in a firm.