2· value 11.00 points Ava School of Learning obtained a charter at the start of

Question

2· value 11.00 points 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 $30 cash per share from four individuals and issued 4,000 shares of common stock to eac b. Issued 5,000 shares of common stock to an outside investor at $30 cash per share. c. Issued 7,000 shares of preferred stock at $15 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 2 3 Record the issuance to four individuals of 4,000 shares each of common stock with no par value for a price of $30 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Prepare stockholder's equity ;

Date accounts & explanation debit credit Cash a/c 480000 Common stock a/c (4000*4*30) 480000 (To record issuance of common stock) Cash a/c 150000 common stock a/c (5000*30) 150000 (To record issuance of common stock) Cash a/c (7000*15) 105000 Preferred stock 70000    Paid in capital in excess of par value-preferred stock 35000 (To record issuance of preferred stock)

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