To expand operations, Aragon Consulting issued 1,350 shares of previously unissu
ID: 2522008 • Letter: T
Question
To expand operations, Aragon Consulting issued 1,350 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share a Complete the table below, indicating the account, amount and direction of the effect for the stock issuance. (Enter any decreases to account balances with a minus sign.) ??. Prepare the journal entry for the stock issuance. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) ournal entry worksheet Haectrul Ih": oou.nsalof, 1ASU sharu» w1th " $1 par vsslut far pr.cu of S5u ?.r ? Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. (Enter any decreases to account balances with a minus sign.) 2 Prepare the journal entry for the stock issuance, if the par value were S2 per share. (If no entry is required for a transactionlevent, select "No Journal Entry Required" In the first account field.) Journal entry worksheet Record the ssuance of 1,350 shares with a $2 par value for a price of ss0 per obe: Eeter er debies beforeExplanation / Answer
Solution:
Part 1a –
Assets
=
Liabilities
+
Stockholders' Equity
Cash
(1350*$50)
$67,500
=
Common Stock (1350*1)
$1,350
Paid in Capital in Excess of Par - Common Stock
(1350*49)
$66,150
Part 1-b
Transaction
General Journal
Debit
Credit
1
Cash (1350*$50)
$67,500
Common Stock (1350*$1)
$1,350
Additional Paid in Capital in Excess of par - Common Stock (bal fig)
$66,150
Part 2a-
Assets
=
Liabilities
+
Stockholders' Equity
Cash
$67,500
=
Common Stock (1350*2)
$2,700
Paid in Capital in Excess of Par - Common Stock
$64,800
Part 2b –
Transaction
General Journal
Debit
Credit
1
Cash (1350*$50)
$67,500
Common Stock (1350*$2)
$2,700
Additional Paid in Capital in Excess of par - Common Stock (bal fig)
$64,800
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Assets
=
Liabilities
+
Stockholders' Equity
Cash
(1350*$50)
$67,500
=
Common Stock (1350*1)
$1,350
Paid in Capital in Excess of Par - Common Stock
(1350*49)
$66,150