Question

Prepare the journal entries to record the following separate issuances of stock:

1.) A corporation issued 15,000 shares of $8 par value common stock for $192,000.

2.) A corporation issued 4,500 shares of no-par common stock in exchange for a building worth $80,000.

3.) A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $100,000. The stock has a $8 stated value.

4.) A corporation issues 6,000 shares of $19 par value preferred stock for $120,000.

Answer 1

Account name	Debit($)	Credit($)
1. Cash	192,000
Common stock, $8 par value		120,000
Paid in capital in excess of par value, common stock		72,000
2. Building	80,000
Common stock		80,000
3. Organization expense	100,000
Common stock, $8 par value		8,000
Paid in capital in excess of stated value		92,000
4. Preferred stock	120,000
Common stock, $19 par value		114,000
Paid in capital in excess of par value		6,000

Note: 2. As no par value is given , it is assumed that common stock is issued for $80,000