Question

On April 1, 10,000 shares of $8 par common stock were issued at $25, and on April 7, 3,000 shares of $80 par preferred stock were issued at $107. Required: Journalize the entries for April 1 and 7. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Journal

Date	Description	Post. Ref.	Debit ($)	Credit ($)
April 1	Cash and Cash Equivalents (10000 shares*$25)		250,000
	Common Stock (10000 shares*$8)	321		80,000
	Paid-In Capital in Excess of Par Common Stock              (10000 shares*($25-$8))	322		170,000
	(Being 10000 shares of common stock issued at $25 i.e., $17 in excess of par $8)
April 7	Cash and Cash Equivalents (3000 shares*$107)		321,000
	Preferred Stock (3000 shares*$80)	311		240,000
	Paid-In Capital in Excess of Par Preferred Stock              (3000 shares*($107-$80))	312		81,000
	(Being 3000 shares of preferred stock issued at $107 i.e., $27 in excess of par $80)