Question

t7 - Chapter 11 Homework Assignment Help Save & Exit Check my M11-4 Analyzing and Recording the Issuance of Common Stock (LO 11-2] To expand operations, Aragon Consulting issued 1750 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: Print 1-a. Complete the table below, indicating the account, amount and direction of the effect for the stock issuance 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount and direction of the effect for the stock issuance with a par value of $2 2.b. Prepare the journal entry for the stock issuance, if the par value were $2 per share Complete this question by entering your answers in the tabs below Reg 1A Reg 18 Reg 28 Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. (Enter any decreases to account balances Assets Llabilities Stockholders' Equity Pray 1 of 4 !!! Next >

Answer 1

Answer to Part 1-a. Assets Cash Liabilities 87,500 Stockholders' Equity Common Stock 1,750 Paid in Capital in excess of + Par - Common Stock 85,750 Answer to Part 2-a. Assets Cash Liabilities 87,500 Stockholders' Equity Common Stock 3,500 Paid in Capital in excess of Par - Common Stock 84,000

Answer to Part 1-b.

No.	General Journal	Debit	Credit
1.	Cash (1,750 * $50)	87,500
	Common Stock (1,750 * $1)		1,750
	Paid in capital in excess of par - C S		85,750
	(Record issuance of Common Stock)

Answer to Part 2-b.

No.	General Journal	Debit	Credit
1.	Cash (1,750 * $50)	87,500
	Common Stock (1,750 * $2)		3,500
	Paid in Capital in excess of par - C S		84,000
	(Record issuance of Common Stock)