Upon issuance, common stock is generally recorded at its fair value, which is typically the amount of proceeds received. SJWC proposes to issue new Common Equity solely to its parent San Jose Water Corporation (Parent).Common stock represents the basic ownership interest in the reporting entity. It is the residual corporate interest that bears the ultimate risk of loss. In this video, I teach you the process of how to record the issuance of common stock. Cash dividends do not reduce net income; Dividends are paid all on issued shares of stock, including preferred, common, and treasury stock. The entry involves debiting cash (or another asset if applicable) and crediting common stock for the par value of the shares issued. Issuing common stock is how a corporation can generate capital, generate money, for use in the company. Common stock, as of the latest practicable date. Up to 32,164,576 Shares of Common Stock.