Question

On May 10, a company issued for cash 1,800 shares of no-par common stock (with a stated value of $3) at $16, and on May 15, it issued for cash 2,000 shares of $16 par preferred stock at $60. Required: Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	May-10	Cash		28,800
		Common stock			5,400
		Paid in capital in excess of stated value-Common stock			23,400
	May-15	Cash		1,20,000
		Preferred stock			32,000
		Paid in capital in excess of par value-Preferred stock			88,000