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6. Turque corporation issued 4,000 shares of its no-par-value common stock ( sta

ID: 2436177 • Letter: 6

Question

6. Turque corporation issued 4,000 shares of its no-par-value common stock (
stated value, $20) for cash at $22 a share. Record the issuance of the stock on
page 1 of a general journal. Omit the description.

7. On July 1, 2010, Abbott corporation received a subscription from Brad Jones
for 1,200 shares of its $1 par-value common stock at a price of $20 a share.
Jones made a payment of $10 per share on the stock at the time of the
subscription. Record the receipt of the subscription and the cash payment on
page 1 of a general journal. Then, using the same page of the general journal,
record the payment of the balance of Jones subscription and issuance of the
stock on August 1, 2010. Omit the descriptions.

please show how u got the answer

Explanation / Answer

Cash                    $22x4,000                   $88,000
Common Stock    $20x4,000                                  $80,000
  Paid In Capital In Excess Of Stated Value                  $8,000
_______________________________________________________
July 1, 2010
Stock Subscription Receivable $10x1,200   $12,000
Common Stock                     $0.5x1,200                     $600
Paid In Capital In Excess of Stated Value                 $11,400
_______________________________________________________
Cash                                                        $12,000
Stock Subscription Receivable                               $12,000
_______________________________________________________
August 1, 2010
Cash                    $10x1,200                    $12,000
Common Stock   $0.50x1,200                                      $600
Paid In Capital In Excess of Stated Value                 $11,400
________________________________________________________

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