Question

Prepare journal entries to record each of the following four separate issuances of stock.

1. A corporation issued 6,000 shares of $20 par value common stock for $144,000 cash.
2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,000. The stock has a $2 per share stated value.
3. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,000. The stock has no stated value.
4. A corporation issued 1,500 shares of $50 par value preferred stock for $133,000 cash.

  

Answer 1

Journal entries

No	General Journal	Debit	Credit
a	Cash	144000
	Common Stock (6000*20)		120000
	Paid in capital in excess of par value-Common Stock		24000
b	Organization expense	58000
	Common Stock (3000*2)		6000
	Paid in capital in excess of par value-Stated Stock		52000
c	Organization expense	58000
	Common Stock		58000
d	Cash	133000
	Preferred stock (1500*50)		75000
	Paid in capital in excess of par value-Preferred Stock		58000

answered by: anonymous