Question

On January 22, Zentric Corporation issued for cash 160,000 shares of no-par common stock at $8. On February 14, Zentric issued at par value 45,000 shares of preferred 2% stock, $50 par for cash. On August 30, Zentric issued for cash 10,000 shares of preferred 2% stock, $50 par at $56.

Journalize the entries to record the January 22, February 14, and August 30 transactions. If an amount box does not require an entry, leave it blank.

Jan. 22	Cash
	Common Stock
Feb. 14	Cash
	Preferred Stock
Aug. 30	Cash
	Preferred Stock
	Paid-In Capital in Excess of Par-Preferred Stock

Answer 1

Journal Entries:

Date	Particulars	Debit	Credit
Jan. 22	Cash (160,000*8)	1,280,000
	Common Stock		1,280,000
Feb. 14	Cash (45,000*50)	2,250,000
	Preferred Stock		2,250,000
Aug. 30	Cash (10,000*56	560,000
	Preferred Stock (10,000*50)		500,000
	Paid-In Capital in Excess of Par-Preferred Stock		60,000