Question

On February 13, Epperson Company issued for cash 75,000 shares of no-par common stock (with a stated value of $125) at $140. On September 9, Epperson issued at par 15,000 shares of 1%, $60 par preferred stock at par for cash. On November 23, Epperson issued for cash 8,000 shares of 1%, $60 par preferred stock at $70. Required: Journalize the entries to record the February 13, September 9, and November 23 transactions. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal entry

Date	General Journal	Debit	Credit
Feb 13	Cash (75000*140)	10500000
	Common Stock (75000*125)		9375000
	Paid in capital in excess of stated value-Common Stock		1125000
Sep 9	Cash (15000*60)	900000
	Preferred stock		900000
Nov 23	Cash (8000*70)	560000
	Preferred stock		480000
	Paid in capital in excess of par value-Preferred stock		80000