Exercise 11-4 Recording stock issuances LO P1 Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 4,000 shares of $20 par value common stock for $96,000 cash. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,000. The stock has a $2 per share stated value. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,000. The stock has no stated value. A corporation issued 1,000 shares of $100 par value preferred stock for $136,000 cash.
A. Record the issue of 4,000 shares of $20 par value common stock for $96,000 cash.
B. Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,000. The stock has a $2 per share stated value.
C. Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,000. The stock has no stated value.
D. Record the issue of 1,000 shares of $100 par value preferred stock for $136,000 cash.
| No. | Accounts | debit | credit |
| 1 | Cash | 96000 | |
| common stock $20 par value | 80000 | ||
| paid in capital in excess of par value-common stock | 16000 | ||
| 2 | Organisation expenses | 36000 | |
| common stock,$2 stated value | 4000 | ||
| paid in capital in excess of par value-common stock | 32000 | ||
| 3 | Organisation expenses | 36000 | |
| common stock,no par value | 36000 | ||
| 4 | Cash | 136000 | |
| preferred stock,$100 par value | 100000 | ||
| paid in capital in excess of par value-preferred stock | 36000 |
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