Question

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 340,000 shares of $10 par common stock and 65,000 shares of 4 percent cumulative class A preferred stock. The class A stock had a stated value of $20 per share. The following stock transactions pertain to Eastport Inc.:

!) prepare general journal entries for these transactions

Issued 19,000 shares of common stock for $15 per share.

Issued 12,000 shares of the class A preferred stock for $25 per share.

Issued 57,000 shares of common stock for $18 per share.

Answer 1

Account Titles and Explanation	Debit	Credit
Cash (19,000*$15)	$285,000
Common stock (par) (19,000*$10)		$190,000
Additional paid in capital - Common stock		$95,000

Account Titles and Explanation	Debit	Credit
Cash (12,000*$25)	$300,000
Common stock (par) (12,000*$20)		$240,000
Additional paid in capital - Preferred stock		$60,000

Account Titles and Explanation	Debit	Credit
Cash (57,000*$18)	$1,026,000
Common stock (par) (57,000*$10)		$570,000
Additional paid in capital - Common stock		$456,000