Question

Brief Exercise 11-2

On May 10, Jack Corporation issues 2,200 shares of $13 par value common stock for cash at $21 per share.

Journalize the issuance of the stock. (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.)

Date	Account Titles and Explanation	Debit	Credit
May 10

Answer 1

Credit Date May. 10 Debit 46,200 $ Account Titles and Explanation Cash Common Stock Paid in capital in Excess of par value - common stock (Being common stock issued recorded) $ $ 28,600 17,600 Working Notes: Cash = 2,200*$21 = $46,200 Common stock = 2,200*$13 = $28,600 Paid in capital in Excess of par value - common stock = 2,200*($21-$13) = $17,600