Prepare journal entries to record the following four separate Issuances of stock
ID: 2588615 • Letter: P
Question
Prepare journal entries to record the following four separate Issuances of stock 1 A corporation issued 2,000 shares of $5 par value common stock for $12,000 cash 2 A corporathon issued 1000 hares of no par common stock to its promoters i exchange for their efforts, estimated to be worth $40,000. The stock has a $4 per share stated value. 3. A corporation issued 1,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth 4. A corporation issued 500 shares of $75 par value preferred stock for $77,500 cash $40,000. The stock has no stated value View transaction tst Print Journal entry worksheet Record the issue of 2,000 shares of $5 par value common stock for $12,000 cash. Note: Enter debits before credts Record entry F3 F4 FT Esc F1Explanation / Answer
Solution:-
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Transactions General Journal Debit Credit 1 Cash 12,000 Common stock. $5 par value 10,000 Paid-in capital in excess of par value, Common stock 2,000 2 Organization expenses 40,000 Common stock, $4 stated value 4,000 Paid-in capital in excess of stated value, common stock 36,000 3 Organization expenses 40,000 Common stock, no-par value 40,000 4 Cash 77,500 Preferred stock, $75 par value 37,500 Paid-in capital in excess of par value, preferred stock 40,000