On May 10, a company issued for cash 1500 shares of no par common stock (with a stated value of $2) at $10/share.
On May 15, the company issued 2000 shares of $15 par preferred stock for $50/share.
Journalize these transactions.
Answer:-
No. | Date | General Journal | Debit | Credit |
$ | $ | |||
1 | May.10 | Cash (1500 shares*$10 per share) | 15000 | |
Common stock (1500 share*$2 per share) | 3000 | |||
Paid-In Capital in Excess of Par-Common stock (1500 share*$8 per share | 12000 | |||
(Being common stock issued) | ||||
No. | Date | General Journal | Debit | Credit |
$ | $ | |||
2 | May. 15 | Cash (2000 share*$50 per share) | 100000 | |
Preferred stock (2000 share*$15 per share) | 30000 | |||
Paid-In Capital in Excess of Par-Preferred stock (2000 share*$35 per share) | 70000 | |||
(Being preferred stock issued) |
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