Question

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 $59,500. 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 $59,500. The stock has no stated value. 4. A corporation Issued 1,000 shares of $25 par value preferred stock for $84,500 cash. Book Print ferences View transaction list Journal entry worksheet 2 < 1 4 Record the issue of 4,000 shares of $20 par value common stock for $96,000 cash. Note: Enter debits before credits Transaction General Journal Dobit Credit

Answer 1

Journal Entries to Record Issuance of Stock

Date	Accounts Titles and Explantions	Debit	Credit
1	Cash	$80,000
	Additional paid in stock	$16,000
	Commmon stock		$96,000
	being issued 4,000 common stock @20 each and rest will be Additional paid in stock 4,000 @4 per share
2	Cash	$53,500
	Additional paid in stock	$6,000
	Commmon stock		$59,500
	being stated value @3 per share on 2,000 share that is $6,000 and the balance is $53,500 in cash
3	Cash	$59,500
	Commmon stock		$59,500
	being no stated value all issued at common stock
4	Cash	$109,500
	Commmon stock		$25,000
	Preffered Stock		$84,500
	being issued 1,000 shares at @25 per share at common stock and preference share at $84,500 value