Question

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value $10. During the year, the following selected transactions occurred: a. Collected $37 cash per share from four individuals and issued 4,700 shares of common stock to each. b. Issued 5,700 shares of common stock to an outside investor at $37 cash per share. c. Issued 7,700 shares of preferred stock at $23 cash per share. Required: 1. Prepare the journal entries indicated for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 Record the issuance to four individuals of 4,700 shares each of common stock with no par value for a price of $37 per share. Note: Enter debits before credits. General Journal Debit Credit Transaction Clear entry View general journal Record entry

Answer 1

TR	General Journal				Debit	Credit
a.	Cash				695600
	common stock					695600
b.	Cash				210900
	common stock					210,900
c.	Cash				177100
	preferred stock					77000
	Addittional paid in capital-PS					100100
			Balance sheet
		At    December             31
		Stockholder's Equity
	Contributed Capital:
	Preferred Stock ,$10 par value ,20000 shares authorized
	7,700 shares issued and outstanding						77000
	Addittional paid in capital-preferred stock						100100
	Common stock no par ,50000 shares authorized
	24,500 shares issued and outstanding						906500
	total contributed capital						1083600
	Retained earnings						33,000
	total stockholders Equity						1116600