(Prepare journal entries to record the following four separate issuances of stoc
ID: 2517313 • Letter: #
Question
(Prepare journal entries to record the following four separate issuances of stock.)
A corporation issued 4,000 shares of $10 par value common stock for $48,000 cash.
A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $47,500. The stock has a $2 per share stated value.
A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $47,500. The stock has no stated value.
A corporation issued 1,000 shares of $75 par value preferred stock for $122,500 cash.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Cash 48000 Common stock 40000 Paid in capital from excess of par value-common stock 8000 (To record issue common stock) Organisation fees 47500 Common stock 4000 Paid in capital in excess of stated value-common stock 43500 (To record issue common stock) Cash 47500 Common stock 47500 (To record issue common stock) Cash 122500 Preferred stock 75000 Paid in capital in excess of par value-Preferred stock 47500 (To record issue preferred stock)Related Questions
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