Incorporating and stock issuance On November 1, Daniels Consulting incorporated
ID: 2568812 • Letter: I
Question
Incorporating and stock issuance On November 1, Daniels Consulting incorporated issuing 10,000 shares of $2 par, common stock (total of $200,000 authorized) for Daniel's capital and $3,197 cash, and the event resulted in total stockholders' equity of $25,452. The company decides to raise additional capital for a planned business expansion by issuing 8.000 additional $2 par value common shares for S24,000 and by issuing 2.500, 4% S50 par preferred shares at S55 per share total of $100,000 authorized). Journalize the entries related to the incorporation and issuances of both common and preferred shares. Remember to copy these JE's to the "Journal tab" and post your entries to the Ledger. Date Accounts and Explanation Debit Credit Nov. 1 Incorporating, issued common stock for cash and clear out Daniers capital account Nov. 1 Issued common stock for cash Nov. 1 Issued preferred stock for cash.Explanation / Answer
Date Accounts Title Dr in $ CR in $ 1-Nov Cash Account dr. 3197 Daniel capital Dr. 22255 Common Stock Cr. 20,000 Additional paid in capital Cr. 5452 (Issued common stock for cash and clear out Daniels capital) 1-Nov Cash Account Dr. 24000 Common Stock Cr. 16000 Additional paid in capital Cr. 8000 (Issued common stock for cash) 1-Nov Cash Account Dr. 137500 4% Preferred Stock Cr. 125000 Additional Paid in capital Cr. 12500 (Issued preferred stock for cash)