Question

Stock Issuance (Par, No-Par, and Stated Value)

The following independent stock transactions occurred during January 20-- for Various Corporations:

(a)	Issued 6,300 shares of $10 par common stock for $63,000 cash.
(b)	Issued 3,700 shares of $10 par common stock for $50,600 cash.
(c)	Issued 5,300 shares of no-par common stock for $58,500 cash.
(d)	Issued 3,700 shares of no-par common stock for $38,900 cash.
(e)	Issued 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash.
(f)	Issued 2,700 shares of no-par common stock with a stated value of $8 per share for $22,500 cash.

Prepare general journal entries for these stock transactions, identifying each transaction by letter.

If an amount box does not require an entry, leave it blank.

Page: 1

	DATE	ACCOUNT TITLE	DOC. NO.	POST. REF.	DEBIT	CREDIT
1	a.						1
2							2
3							3
4	b.						4
5							5
6							6
7							7
8	c.						8
9							9
10							10
11	d.						11
12							12
13							13
14	e.						14
15							15
16							16
17	f.						17
18							18
19							19

Answer 1

Journal entry

No	Account and explanation	Post ref	Debit	Credit
a)	Cash		63000
	Common Stock			63000
	(To record common stock)
b)	Cash		50600
	Common Stock			37000
	Paid in capital in excess of par value-Common Stock			13600
	(To record common stock)
c	Cash		58500
	Common Stock			58500
	(To record common stock)
d	Cash		38900
	Common Stock			38900
	(To record common stock)
e	Cash		50400
	Common Stock			50400
	(To record common stock)
f	Cash		22500
	Common Stock			21600
	Paid in capital in excess of stated value-Common Stock			900
	(To record common stock)