E11-6 Recording and Reporting Stockholders Equity Transactions LO 11-2, LO 11-4]

Question

E11-6 Recording and Reporting Stockholders Equity Transactions LO 11-2, LO 11-4] Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $32 cash per share from four individuals and issued 4,200 shares of common stock to each. b. Issued 5,200 shares of common stock to an outside investor at $32 cash per share C. Issued 7,200 shares of preferred stock at $17 cash per share. Required 1. Prepare the journal entries indicated for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the issuance to four individuals of 4,200 shares each of common stock with no par value for a price of $32 per share. Note: Enter debits before credits. ransaction General Journal Debit it Credit Record entry Clear entry View general journal

Explanation / Answer

Transaction General Journal Debit Credit a. Cash (4200*4*32) 537600 Common stock 537,600 b. Cash (5200*32) 166400 common stock 166,400 c. Cash (7200*17) 122400 Common stock (7200*10) 72000 paid in capital in excess of par 50400

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