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I’m having issues with what to log in my general journal for “Record the issuanc

ID: 2539294 • Letter: I

Question

I’m having issues with what to log in my general journal for “Record the issuance of additional share stock for 3$” The following information applies to the questions displayed below Brothers Harry and Herman Hausyerday began operations of their machine shop (H&H; Tool, Inc) on January 1, 2013. The annual reporting period ends December 31. The trial balance on January 1, 2015, follows (the amounts are rounded to thousands of dollars to simplify) Account Titles Debit Credit $ 3 12 60 15 Cash Accounts Receivable Supplies Land Equipment Accumulated Depreciation Software Accumulated Amortization Accounts Payable Notes Payable (short-term) Salaries and Wages Payable Interest Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Amortization Expense Income Tax Expense Interest Expense Supplies Expense $ 6 5 71 0 Totals $95 $95

Explanation / Answer

Answer

The entry to record Issue of aditional share will be

Cash (Dr.) $3

Common Stock (Cr.) $3

(Being shares issued for cash)