Prepare journal entries to record each of the following four separate issuances
ID: 2534017 • Letter: P
Question
Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash 2. A corporation issued 2.000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,.000. The stock has a $1 per share stated valuc. 3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000 The stock has no stated value. 4. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.Explanation / Answer
TR Account titles & Explanations Debit Credit 1 Cash 35,000 Common stock (4000*5) 20,000 paid in capital in excess of par -CS 15,000 2 organisational expense/promotional expense 40,000 common stock (2000*1) 2000 paid in capital in excess of stated value-CS 38,000 3 organisational expense/promotional expense 40,000 cash 40,000 4 Cash 60,000 preferred Stock 50,000 paid in capital in excess of par 10,000