During its first year of operations, Flint Corporation had these transactions pe
ID: 2581918 • Letter: D
Question
During its first year of operations, Flint Corporation had these transactions pertaining to its common stock.
(Record journal entries in the order presented in the problem. 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.)
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
(b)
During its first year of operations, Flint Corporation had these transactions pertaining to its common stock.
(Record journal entries in the order presented in the problem. 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.)
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
(b)
During its first year of operations, Flint Corporation had these transactions pertaining to its common stock.
(Record journal entries in the order presented in the problem. 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.)
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
(b)
Jan. 10 Issued 26,900 shares for cash at $4 per share. July 1 Issued 59,500 shares for cash at $7 per share.Explanation / Answer
Solution:
Part (a) – Journal Entry assuming par value $4 each share
Date
General Journal
Debit
Credit
(a)
Jan.10
Cash (26,900 Shares x $4)
$107,600
Common Stock (Par Value $4 x 26,900 Shares)
$107,600
July.1
Cash (59,500 Shares x $7)
$416,500
Common Stock (Par Value $4 x 59,500 Shares)
$238,000
Paid in Capital in excess of par - Common Stock (3 x 59,500 Shares)
$178,500
Part (b) – Journal Entry assuming no par with stated value $2 each share
Stated value is the minimum value of share.
Following journal entry is to be passed
Date
General Journal
Debit
Credit
(b)
Jan.10
Cash (26,900 Shares x $4)
$107,600
Common Stock (Par Value $2 x 26,900 Shares)
$53,800
Paid in Capital in excess of par - Common Stock (2 x 26,900 Shares)
$53,800
July.1
Cash (59,500 Shares x $7)
$416,500
Common Stock (Par Value $2 x 59,500 Shares)
$119,000
Paid in Capital in excess of par - Common Stock (5 x 59,500 Shares)
$297,500
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Date
General Journal
Debit
Credit
(a)
Jan.10
Cash (26,900 Shares x $4)
$107,600
Common Stock (Par Value $4 x 26,900 Shares)
$107,600
July.1
Cash (59,500 Shares x $7)
$416,500
Common Stock (Par Value $4 x 59,500 Shares)
$238,000
Paid in Capital in excess of par - Common Stock (3 x 59,500 Shares)
$178,500
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