Prepare journal entries to record the following four separate issuances of stock
ID: 2588616 • 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 corporation issued 1000 shar $A0,000. The stock has a SA per share stated value. 3. A corporation issued 1,000 shares no 3. A corporation bsued 1000 shares es of no-par common stock to its promoters in exchange for their efforts, estimated to be worth of no par common stock to its promoters in exchange for their efforts, estimated to be worth exchange for $40,000. The stock has no stated value 4. A corporation issued 500 shares of $75 par value preferred stock for $77500 cash ew transaction list Journal entry worksheet Record the issue of 1,000 shares of no-par c common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $4 per share stated value. Note: Enter debits before credts Record entry Clear entry View general journalExplanation / Answer
Journal entry would be as follows for the given transaction -
Please comment in case of clarification required.
S.No. Particulars Debit Credit 1 Bank A/c Dr. 12000 To Common stock (2000*5) 10000 To Paid in capital in excess of par value (12000-10000) 2000 2 Expense A/c Dr. 40000 To common stock stated value (4*1000) 4000 To paid in capital in excess of stated value(40000-4000) 36000 3 Expense A/c Dr. 40000 To paid in capital in excess of no stated value 40000 4 Cash A/c Dr. 77500 To Preferred stock A/c(75*500) 37500 To paid in capital in excess of par value (77500-37500) 40000