Question

Exercise 11-3 Recording stock issuances LO P1 

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

 1. A corporation issued 8,000 shares of $20 par value common stock for $192.000 cash.

 2. A corporation issued 4,000 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $32,000. The stock has a $1 per share stated value.

 3. A corporation issued 4,000 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $32,000. The stock has no stated value.

 4. A corporation issued 2,000 shares of $100 par value preferred stock for $232,000 cash. 

Answer 1