Question

Cullumber Company issued 1,000 shares of common stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is enter o decimal places, e.g. 5,675. If no entry is required, select "No Entry" for the account tities and enter for the amounts.) (a) The stock had a par value of $4.00 per share and was issued for a total of $45,000. (b) The stock had a stated value of $4.00 per share and was issued for a total of $45,000. (c) The stock had no par or stated value and was issued for a total of $45,000. (d) The stock had a par value of $4.00 per share and was issued to attorneys for services during incorporation valued at $45,000. (e) The stock had a par value of $4.00 per share and was issued for land worth $45,000. No. Account Titles and Explanation Debit Credit

Answer 1

Answer:

No.	Accounts title and explanations			Debit $	Credit $
a.	Cash			45000
	Common Stock (1,000 * $4)				4000
	Additional paid in capital in excess of par-common stock				41000
b.	Cash			45000
	Common Stock				4000
	Additional paid in capital in excess of par-common stock				41000
c.	Cash			45000
	Common stock				45000
d.	Organisation expenses			45000
	Common Stock				4000
	Additional paid in capital in excess of par-common stock				41000
e.	Land			45000
	Common Stock				4000
	Additional Paid in capital in excess of par-common stock				41000