Question

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

1. A corporation issued 10,000 shares of $10 par value common stock for $120,000 cash.
2. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $29,000. The stock has a $1 per share stated value.
3. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $29,000. The stock has no stated value.
4. A corporation issued 2,500 shares of $100 par value preferred stock for $279,000 cash.

  

Answer 1

transaction General journal Debit Credit $ 120,000 $ $ 100,000 20,000 1 cash common stock ( 10000 x 10) Paid in capital in excess of par value -common stock 2 organisation expense common stock ( 5000 x 1) Paid in capital in excess of stated value-common stock $ 29,000 $ $ 5,000 24,000 $ 29,000 3 organisation expense common stock $ 29,000 $ 279,000 4 cash preferred stock (2500 x 100) Paid in capital in excess of par value - preferred stock please comment if you have any doubt Please give thumps up if you satisfied with the answer $ $ 250,000 29,000