Question

shares of its no-par common stock at $20 per share. Without making journal entries, determine the total paid-in capital created by these transactions. E13-21 Journalizing issuance of stock Steller Systems completed the following stock issuance transactions: May 19 Jun. 3 11 Issued 1,700 shares of $3 par value common stock for cash of $10.50 per share. Issued 300 shares of $9, no-par preferred stock for $15,000 cash. Received equipment with a market value of $68,000 in exchange for 5,000 shares of the $3 par value common stock. Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Steller Systems? E13-22 Journalizing issuance of no-par stock Eates Corp. issued 8,000 shares of no-par common stock for $13 per share. Requirements 1. Record issuance of the stock if the stock: a. is true no-par stock. 03 e WE

Answer 1

Answer :-

E13 - 21 :-

1.Journal entry to record the transaction are as follows :-

Date	Particular	Debit	Credit
May 19	Cash A/c Dr. (1,700 shares × $10.5 per share)	$17,850
	To Common stock - $3 par value		$5,100
	To Paid in capital in excess of par value - common stock		$12,750
Jun 3	Cash A/c Dr.	$15,000
	To Preferred Stock A/c		$15,000
Jun 11	Equipment A/c Dr.	$68,000
	To Common stock - $3 par value (5,000 × $3 par value)		$15,000
	To Paid up Capital in excess of par value - common stock		$53,000

2. The paid in capital did these transactions generate for Steller systems are as follows :-

Stockholders equity section (partial)
Paid - in Capital :
Preferred Stock - 300 share issued	$15,000
Common Stock - 6,700 share issue at $3 par value	$20,100
Paid in capital in excess of par value - common stock ($12,750 + $53,000)	$65,750
Total Paid in Capital	$100,850

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