Problem

Prepare journal entries to record the following four separate issuances of stock. 1...

Prepare journal entries to record the following four separate issuances of stock.

1. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value.

2. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value.

3. Four thousand shares of $5 par value common stock are issued for $35,000 cash.

4. One thousand shares of $50 par value preferred stock are issued for $60,000 cash.

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Solutions For Problems in Chapter 20