Question

Exercise 11-4

Osage Corporation issued 2,500 shares of stock.

Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

(a)		The stock had a par value of $7 per share and was issued for a total of $46,500.
(b)		The stock had a stated value of $7 per share and was issued for a total of $46,500.
(c)		The stock had no par or stated value and was issued for a total of $46,500.
(d)		The stock had a par value of $7 per share and was issued to attorneys for services during incorporation valued at $46,500.
(e)		The stock had a par value of $7 per share and was issued for land worth $46,500.

No.	Account Titles and Explanation	Debit	Credit
(a)
(b)
(c)
(d)
(e)

Answer 1

Journal Entries
Transaction	Account Title and explanation	Debit	Credit
"A"	Cash	$                  46,500
	Common Stock		$                     17,500
	Paid in Capital in excess of par - Common Stock		$                     29,000
"B"	Cash	$                  46,500
	Common Stock		$                     17,500
	Paid in Capital in excess of Stated value - Common Stock		$                     29,000
"C"	Cash	$                  46,500
	Common Stock		$                     46,500
"D"	Preliminary Expenses	$                  46,500
	Common Stock		$                     17,500
	Paid in Capital in excess of par - Common Stock		$                     29,000
"E"	Land	$                  46,500
	Common Stock		$                     17,500
	Paid in Capital in excess of par - Common Stock		$                     29,000