Question

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 $58,500. 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 $58,500. The stock has no stated value.
4. A corporation issued 2,000 shares of $50 par value preferred stock for $158,500 cash.

  2) Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has a $1 per share stated value.

Journal entry worksheet < A B C D Record the issue of 8,000 shares of $20 par value common stock for $192,000 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit

3) Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has no stated value.

4) Record the issue of 2,000 shares of $50 par value preferred stock for $158,500 cash.

Options For the Journal

• Building
• Cash
• Common dividend payable
• Common stock dividend distributable
• Common stock, $1 par value
• Common stock, $1 stated value
• Common stock, $20 par value
• Common stock, no-par value
• Contributed capital, treasury stock
• Income summary
• Inventory
• Land
• Machinery
• Note payable
• Organization expenses
• Paid-in capital in excess of par value, Common stock
• Paid-in capital in excess of par value, preferred stock
• Paid-in capital in excess of stated value, common stock
• Preferred stock, $0.50 par value
• Preferred stock, $1 stated value
• Preferred stock, $1 stated value
• Preferred stock, $20 par value
• Preferred stock, $5 par value
• Preferred stock, $50 par value
• Preferred stock, no-par value

Answer 1

Answer-

Journal Entries
DATE	GENERAL JOURNAL	DEBIT	CREDIT
1	Cash	192,000
	Common Stock (8,000*20)		160,000
	Paid in Excess of Par- Common Stock = 192,000-160,000		32,000
	(To record common shares isused for cash)
2	Promotion Expenses	58,500
	Common Stock (4,000*1)		4,000
	Paid in Excess of Par- Common Stock = 58,500-4,000		54,500
	(To record common shares isused to promoters)
3	Promotion Expenses	58,500
	Common Stock		58,500
	(To record 4,000 common shares isused to promoters)
4	Cash	158,500
	Preferred Stock (2,000*50)		100,000
	Paid in Excess of Par- preferred Stock = 158,500-100,000		58,500
	(To record preferred shares isused for cash)

Kindly give Thumbs up if u like my answer....Thanks!!!!