Question

Prepare journal entries to record the following four separate issuances of stock.

1. A corporation issued 7,000 shares of $30 par value common stock for $252,000 cash.
2. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has a $1 per share stated value.
3. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has no stated value.
4. A corporation issued 1,750 shares of $75 par value preferred stock for $161,750 cash.   

• 2

  Record the issue of 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has a $1 per share stated value.

• 3

  Record the issue of 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,500. The stock has no stated value.

• 4

  Record the issue of 1,750 shares of $75 par value preferred stock for $161,750 cash.

Answer 1

Journal

Date	Particulars	Debit	Credit
1	Cash	252,000
	Common stock		210,000
	Paid in capital, in excess of par- common		42,000
2.	Organization expense	30,500
	Common stock		3,500
	Paid in capital, in excess of par- common		27,000
3.	Organization expense	30,500
	Common stock		30,500
4	Cash	161,750
	Preferred stock		131,250
	Paid in capital, in excess of par- Preferred		30,500

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