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Exercise 13-4 Osage Corporation issued 4,350 shares of stock Prepare the entry f

ID: 2432019 • Letter: E

Question

Exercise 13-4 Osage Corporation issued 4,350 shares of stock Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented an (a) The stock had a par value of $7 per share and was issued for a total of $44,5o0. n l2 (c) The stock had no par or stated value and was issued for a total of $44,500. (b) The stock had a stated value of $7 per share and was issued for a total of $44,500 (d) The stock had a par value of $7 per share and was issued to attorneys for services during incorporation valued at $44,500. (e) The stock had a par value of $7 per share and was issued for land worth $44,500. No. Account Titles and Explanation Debit Credit 23

Explanation / Answer

Answers

No.

Accounts title

Debit

Credit

Working

a.

Cash

$                             44,500.00

[total received]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Par - Common Stock

$               14,050.00

[44500 - 30450]

b.

Cash

$                             44,500.00

[total received]

Common Stock

$               30,450.00

[4350 shares x $7 stated]

Paid in Capital in excess of Stated Value - Common Stock

$               14,050.00

[44500 - 30450]

c.

Cash

$                             44,500.00

[total received]

Common Stock

$               44,500.00

[total received]

d.

Legal Expenses

$                             44,500.00

[total fees]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Par - Common Stock

$               14,050.00

[44500 - 30450]

e.

Land

$                             44,500.00

[Land cost]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Stated Value - Common Stock

$               14,050.00

[44500 - 30450]

No.

Accounts title

Debit

Credit

Working

a.

Cash

$                             44,500.00

[total received]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Par - Common Stock

$               14,050.00

[44500 - 30450]

b.

Cash

$                             44,500.00

[total received]

Common Stock

$               30,450.00

[4350 shares x $7 stated]

Paid in Capital in excess of Stated Value - Common Stock

$               14,050.00

[44500 - 30450]

c.

Cash

$                             44,500.00

[total received]

Common Stock

$               44,500.00

[total received]

d.

Legal Expenses

$                             44,500.00

[total fees]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Par - Common Stock

$               14,050.00

[44500 - 30450]

e.

Land

$                             44,500.00

[Land cost]

Common Stock

$               30,450.00

[4350 shares x $7 par]

Paid in Capital in excess of Stated Value - Common Stock

$               14,050.00

[44500 - 30450]

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