Question

1. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash.
2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,500. The stock has a $3 per share stated value.
3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,500. The stock has no stated value.
4. A corporation issued 750 shares of $75 par value preferred stock for $96,750 cash.

Answer 1

Answer
No	Journal entries	Debit	Credit
1	Cash	$36,000
	common stock (3000 *10)		$30,000
	Paid-in Capital in Excess of Par - Common stock		$ 6,000
	(To records issue of Common stock)
2	Organisation Exp	$40,500
	Common stock (1500*3)		$ 4,500
	Paid-in Capital in Excess of Par - Common stock		$36,000
	(To records issue of Shares to its promoters with stated value)
3	Organisation Exp	$40,500
	Common stock		$40,500
	(To records issue of Shares to its promoters without stated value)
4	Cash	$96,750
	Preferred stock (750*75)		$56,250
	Paid-in Capital in Excess of Par - Preferred Stock		$40,500
	(To records issue of preferred stock)