1. record the issue of 8000 shares of $10 par value common stock for $96000 cash

Question

1. record the issue of 8000 shares of $10 par value common stock for $96000 cash

2. Record the issue of 4000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,000. The stock has a $1 per share stated value.

3. Record the issue of 4000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,000. The stock has no stated value.

4. Record the issue of 2,000 shares of $50 par value preferred stock for $145,000 cash.

Explanation / Answer

Entries:

amount in $

s.no particulars    debit credit 1. cash 96,000 Common stock 80,000 Additional paid in capital 16,000 2 Organizations Costs (Promoters' fees) 45,000 Common stock 45,000 3 Organizations Costs (Promoters' fees) 45,000 Common stock 2,000 Additional paid in capital 43,000 4 cash 145,000 preferred stock 100,000 additional paid in capital 45,000

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