Issued 22,500 shares of common stock to each of the three organizers and collect
ID: 2466150 • Letter: I
Question
Issued 22,500 shares of common stock to each of the three organizers and collected $11 cash per share from each of them.
Prepare the journal entries indicated for each of the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
King Corporation began operations in January 2014. The charter authorized the following capital stock: Preferred stock: 10 percent, $12 par, authorized 41,100 shares Common stock: $7 par, authorized 86,200 shares During 2014, the following transactions occurred in the order given:Explanation / Answer
a)Issued 22,500 shares of common stock to each of the three organizers and collected $11 cash per share from each of them.
Cash 247,500
Common Stock 157,500
Paid-In Capital in Excess of Par Value, Common Stock 112,500
(Issued 22,500 shares of $7 common stock at $11per share)
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b) Sold 8,600 shares of the preferred stock at $22 per share.
Cash 189,200
10% Preferred Stock 103,200
Paid-In Capital in Excess of Par, Preferred Stock 86,000
(sold 8,600 shares of $12 preferred stock at $12per share)
c)Sold 1,300 shares of the preferred stock at $22 and 3,400 shares of common stock at $12 per share.
Cash 69,400
Common Stock 23,800
10% Preferred Stock 15,600
Paid-In Capital in Excess of Par Value, Common Stock 17,000
Paid-In Capital in Excess of Par, Preferred Stock 13,000
(Sold 1,300 shares of the preferred stock at $22 and 3,400 shares of common stock at $12 per share)
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