Prepare journal entries to record the following four separate issuances of stock
ID: 2492236 • Letter: P
Question
Prepare journal entries to record the following four separate issuances of stock.
A corporation issued 8,000 shares of $10 par value common stock for $96,000 cash. 2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,500. The stock has a $1 per share stated value. 3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,500. The stock has no stated value. 4. A corporation issued 2,000 shares of $100 par value preferred stock for $242,500 cash.
Explanation / Answer
1)
Cash....................................................................................... 96,000
Common Stock, $10 Par value (8000 X $10).......................................80,000
Paid-in Capital in Excess of Par—Common Stock............................16,000
2)
Organisation expenses.................................................42,500
Common stock, $1 stated value........................................................4,000
Paid in capital in excess of stated value-common stock............38,500
3)
Organisation expenses...............................................42,500
Common Stock, No par value...................................42,500
4)
Cash................................................................................242,500
Preferred stock, $100 par value..............................................200,000
Paid in Capital in excess of par--preferred stock................. 42,500