Question

When a company issues 32,000 shares of $5 par value common stock for $50 per share,...

When a company issues 32,000 shares of $5 par value common stock for $50 per share, the journal entry for this issuance would include:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Number of shares issued = 32,000

Par value of 1 common share = $5

Issued price of 1 common share = $50

Cash will be debited by = Number of shares issued x Issued price of 1 common share

= 32,000 x 50

= $1,600,000

Common stock will be credited by = Number of shares issued x Par value of 1 common share

= 32,000 x 5

= $160,000

Paid in capital in excess of par - Common will be credited by = Number of shares issued x (Issued price of 1 common share - Par value of 1 common share)

= 32,000 x (50 - 5)

= 1,440,000

Journal

Account Title and Explanation

Debit

Credit
Cash 1,600,000
Common stock 160,000
Paid in capital in excess of par - Common 1,440,000

kindly give a positive rating if you are satisfied with the solution. Please ask if you have any query related to the question, Thanks.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Exercise 15-5 Bramble Inc. issues 500 shares of $10 par value common stock and 100 shares...
Exercise 15-5 Bramble Inc. issues 500 shares of $10 par value common stock and 100 shares of $100 par value preferred stock for a lump sum of $116,000 . (a) Prepare the journal entry for the issuance when the market price of the common shares is $164 each and market price of the preferred is $205 each. (b) Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $202...
A corporation issues 2,550 shares of common stock for $81,600. The stock has a stated value...
A corporation issues 2,550 shares of common stock for $81,600. The stock has a stated value of $17 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include?
Sage Corporation issued 337 shares of $10 par value common stock and 131 shares of $50...
Sage Corporation issued 337 shares of $10 par value common stock and 131 shares of $50 par value preferred stock for a lump sum of $17,856. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance.
Cheyenne Corporation issued 356 shares of $10 par value common stock and 148 shares of $50...
Cheyenne Corporation issued 356 shares of $10 par value common stock and 148 shares of $50 par value preferred stock for a lump sum of $19,728. The common stock has a market price of $20 per share, and the preferred stock has a market price of $100 per share. Prepare the journal entry to record the issuance.
(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par...
(Lump-Sum Sales of Stock with Preferred Stock) Black Diamond Inc. issues 2,500 shares of $1 par value common stock and 1,000 shares of $50 par value preferred stock for a lump sum of $275,000. Instructions: a) Prepare the journal entry for the issueance when the market value of the common shares is $95 each and market value of the preferred is $60 each. b) Prepare the journal entry for the issuance when only the market value of the common stock...
E 11-4A. Treasury Stock Coastal Corporation issued 25,000 shares of $5 par value common stock at...
E 11-4A. Treasury Stock Coastal Corporation issued 25,000 shares of $5 par value common stock at $15 per share and 6,000 shares of $50 par value, eight percent preferred stock at $85 per share.  Later, the company purchased 3,000 shares of its own common stock at $20 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $25 per share.  Prepare...
Smith has 300,000 shares of common stock outstanding with a par value of $3 per share....
Smith has 300,000 shares of common stock outstanding with a par value of $3 per share. Smith authorized a 10% stock dividend when the market value was $8 per share. A journal entry for the stock dividend would require: 5. Gaines originally issued 15,000 shares of $10 par value common stock at $15 per share. During the current year, 1,000 of these shares were reacquired for $20 each. The proper entry to record the reacquisition includes:
Silva Inc. issues 40,000 shares of $15 Par value common stock for cash at $23 per...
Silva Inc. issues 40,000 shares of $15 Par value common stock for cash at $23 per share, as well as 5,000 shares of $30 Par Value Preferred stock for cash at $40 per share. Prepare the journal entry for this transaction
Sudoku Company issues 19,000 shares of $7 par value common stock in exchange for land and...
Sudoku Company issues 19,000 shares of $7 par value common stock in exchange for land and a building. The land is valued at $240,000 and the building at $371,000. Prepare the journal entry to record issuance of the stock in exchange for the land and building.
1. If Briggs and Stratton Company issues 9000 shares of $5 par value common stock for...
1. If Briggs and Stratton Company issues 9000 shares of $5 par value common stock for $160,000, the account a) Common Stock will be credited for $45,000 b) Paid-In Capital in Excess of Par will be credited for $160,000 c) Cash will be debited for $115,000 d) Paid-in Capital in Excess of Par will be credited for $45,000 2. Airstream Company purchases 400 shares of its own $10 par value common stock for $27 per stock per $29 per share....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT