Question

1) Smart Electronics completed the following stock imance tractions Prepare the journal entries to record these transactions. Explanations are not required. 15 points Issued 4.000 shares of 33 par value common stock for cash of $12 per share Aug. 16 Issued 400 shares of no pur preferred stock for $25.000 cash Sept. 19 Received equipment with a market value of $75.000 in exchange for 5.000 shares of the $3 par value common stock June 7 Total Paid-In Capital generated from these transactions $_

Answer 1

June 7	Cash	$48,000
	To Common stock		$12,000
	To Paid-in-capital in excess of par value		$36,000
	(Being shares issued at par value of $3 at premium of $9 per share)
Aug 16	Cash	$25,000
	To Preference Stock a/c		$25,000
	(Being issue of no-par preference stock)
Sep 19	Equipment a/c	$75,000
	To Common stock		$15,000
	To paid-in capital in excess of par value		$60,000
	(Being equipment worth $75,000 received in exchange of 5000 shares of $3 per share and remaining payable to vendor)

Total paid-in capital generated from these transactions = $36,000 + $60,000 = $96,000/-