Question

Reyuncun 1. Record issuance of the stock if the stock: a. is true no-par stock. b. has stated value of $3 per share. 2. Which type of stock results in more total paid-in capital? 2 E13-23 Journalizing issuance of stock and preparing the stockholders' equity section of the balance sheet The charter for ASAP-TV, Inc. authorizes the company to issue 100,000 shares of $5, no-par preferred stock and 500,000 shares of common stock with $1 par value. Dur. ing its start-up phase, ASAP-TV completed the following transactions: Sep. 6 12 14 Issued 550 shares of common stock to the promoters who organized the corporation, receiving cash of $16,500. Issued 400 shares of preferred stock for cash of $23,000. Issued 1,500 shares of common stock in exchange for land with a market value of $17,000. T Requirements 1. Record the transactions in the general journal. 2. Prepare the stockholders' equity section of the ASAP TV balance sheet at September 30, 2018, assuming ASAP-TV, Inc. had net income of $38,000 for the month. et 02 e 9 F10

Answer 1

Ans
1	Journal
	Date	Prticular	Debit	Credit
	06-Sep	Cash Account (550*$30)	16500
		Security Premium Account (550*$29)		15950
		Common Stock Account (550*$1)		550
		(16500/550= 30 issue price per share)
	12-Sep	Cash Account (400*$57.5)	23000
		Security Premium Account (400*$52.5)		21000
		Preferred Stock Account (400*$5)		2000
		(23000/400= 57.5 issue price per share)
	14-Sep	Land Account (1500*$11.33333)	17000
		Security Premium Account (1500*$10.33333)		15500
		Common Stock Account (1500*$1)		1500
		(17000/1500= 11.33333 issue price per share)
2	Share holder equity as at Sep 30 , 2018
		Particular	Amount
		Authorized Share Capital
		500000 shares of common stock of $1 per share	500000
		100000 shares of preferred stock of $5 per share	100000
		Issued Share Capital
		550 Shares of common stock issued @ $30 per share for consideration in cash	550
		1500 Shares of common stock issued @ $11.33333 per share for consideration other than cash	1500
		400 Shares of preferred stock issued @ $57.5 per share for consideration in cash	2000
			4050
		Security Premium Account
		550 Shares of common stock issued @ $30 per share	15950
		1500 Shares of common stock issued @ $11.33333 per share	15500
		400 Shares of preferred stock issued @ $57.5 per share	21000
			52450
		Retained Earning	38000
		Total Share holder equity as at Sep 30 , 2018	94500