Question

Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 3,000 shares of $20 par value common stock for $72,000 cash. 2. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. The stock has a $3 per share stated value. 3. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. The stock has no stated value. 4. A corporation issued 750 shares of $50 par value preferred stock for $88,500 cash. View transaction list Journal entry worksheet 2 3 4 Record the issue of 3,000 shares of $20 par value common stock for $72,000 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Transaction	General Journal	Debit	Credit
1	Cash	72,000
	Common stock (3,000x$20)		60,000
	Paid in capital in excess of par-Common stock		12,000
2	Organization expense	51,000
	Common stock (1,500x$3)		4,500
	Paid in capital in excess of stated-Common stock		46,500
3	Organization expense	51,000
	Common stock		51,000
4	Cash	88,500
	Common stock (750 x $50)		37,500
	Paid in capital in excess of par-Common stock		51,000