Brief Exercise 11-2 On May 10, Ayayai Corp. issues 1,000 shares of $4 par value

Question

Brief Exercise 11-2

On May 10, Ayayai Corp. issues 1,000 shares of $4 par value common stock for cash at $11 per share.

Journalize the issuance of the stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date

Account Titles and Explanation

Debit

Credit

May 10

Date

Account Titles and Explanation

Debit

Credit

May 10

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

Explanation / Answer

While accounting issuance of stock, additional amount paid in excess of par will account under additional paid in capital account. in common stock account only par value will account

Debit Cash (1,000*$11) $ 11,000 Credit Common stock (1,000*$4) $ 4,000 Credit Additional paid in capital $ 7,000

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