A corporation issued 6,000 shares of $30 par value common stock for $216,000 cas

Question

A corporation issued 6,000 shares of $30 par value common stock for $216,000 cash.

A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has a $1 per share stated value.

A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has no stated value.

A corporation issued 1,500 shares of $50 par value preferred stock for $105,500 cash.

Explanation / Answer

Particulars Debit Credit 1 Cash $ 216,000.00 Common stock, $30 par value $ 180,000.00 Paid in capital in excess of $30 par value, common stock $    36,000.00 (issued 6,000 shares of $30 par value common stock for $216,000 cash) 2 Organization expense $    30,500.00 Common stock, $1 stated value $      3,000.00 Paid in capital in excess of $1 stated value $    27,500.00 (issued 3,000 shares of $1 stated value common stock to promoters in exchange for their efforts, estimated to be worth $30,500) 3 Organization expense $    30,500.00 Common stock, no par value $    30,500.00 (issued 3,000 shares of no-par common stock to promoters in exchange for their efforts, estimated to be worth $30,500) 4 Cash $ 105,500.00 Prefered Stock $    75,000.00 Paid in capital in excess of $50 par value preffered stock $    30,500.00 (issued 1,500 shares of $50 par value preferred stock for $105,500 cash)

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