Question

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- 6 25 13-3 ssuance of par and stated alue common stock P1 Prepare the journal entry to record Jevonte Company's issuance of 36,000 shares of its common stock as- suming the shares have a a. $2 par value and sell for $18 cash per share. b. $2 stated value and sell for $18 cash per share.

Answer 1

Transaction	Account Titles and Explanation	Debit (in $ )	Credit (in $ )
a.	Cash (36,000 shares x $ 18)	$ 648,000
	Common stock           (36,000 shares x $ 2)		$ 72,000
	Paid in capital in excess of par Value - Common stock		$ 576,000
	(To record the issue of common stock)
b.	Cash (36,000 shares x $ 18)	$ 648,000
	Common stock           (36,000 shares x $ 2)		$ 72,000
	Paid in capital in excess of State value - common stock		$ 576,000
	(To record the issue of common stock)