Question

Prepare journal entries to record the following four separate issuances of stock.

A corporation issued 6,000 shares of $10 par value common stock for $72,000 cash.

A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,000. The stock has a $1 per share stated value.

A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,000. The stock has no stated value.

A corporation issued 1,500 shares of $50 par value preferred stock for $101,000 cash.

Record the issue of 6,000 shares of $10 par value common stock for $72,000 cash.

Transaction	General Journal	Debit	Credit
1	Cash	72,000
	Common stock, $10 par value		60,000
			12,000

Record the issue of 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,000. The stock has a $1 per share stated value.

Transaction	General Journal	Debit	Credit
2	Organization expenses	26,000
	Paid-in capital in excess of stated value, common stock

Record the issue of 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $26,000. The stock has no stated value.

Transaction	General Journal	Debit	Credit
3			0

Record the issue of 1,500 shares of $50 par value preferred stock for $101,000 cash.

Transaction	General Journal	Debit	Credit
4

Answer 1