Question

Exercise 11-4 Recording stock issuances LO P1 Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 4,000 shares of $20 par value common stock for $96,000 cash. 2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $54,000. The stock has a $3 per share stated value. 3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $54,000. The stock has no stated value. 4. A corporation issued 1,000 shares of $100 par value preferred stock for $154,000 cash.

Answer 1

nnaadlion Genenal Touanal Debel Cadl Cash Common stacksapake| Pardin capelalenerce 96000 f 80.000 ,Omman stock |Organzakonespone S4000 'Cammonstackftolalec Pard in capelal inexcaes ofeladed value, cemmon : 6000 Organiz ation erpenses Eonmonstark, no panuale Cash Prefared stoct, s100 pavak Paid incaplal fpanveles prefonlsek 3. SHO00 $SHOOO I54000 100 000 54000

fzplanadion 3. Comman stack (A000 Xf 20) f 80,000 Pard in captal : value, common stock In excass 80,000 96000 I6000 2. Commonsdock s3 sdatd valve 000x 3) 60o0 Pard en caprld S4000 6 000) osatevawe, commons tock in excass Pre ferml sack, i00 panvae (do00x 00 4 00000 caplal Pard. in 154000-100000)

Recond the iesue of 19000-shans of{ 9 czchange fon Pan value ommon land valued a a000 and a bueldng valued ad 364000 TzaLion General Touial hand Debal Cradat a43000 364000 Conmenstockpanad Pard.in cappiel ines 171a00 436000 , common Sdack Ezplanadion Commen stoek. S.9 panvalue (14000 X) caprla 43000364000 000 ofparvalue ,commonudou Pard-in in encags I71000 136000