Bramble Corp. began operations on April 1 by issuing 53,400 shares of s5 par val

Question

Bramble Corp. began operations on April 1 by issuing 53,400 shares of s5 par value common stock for cash at $16 per share. In addition, Bramble issued 3,500 shares of $1 par value preferred stock for $5 per share. ournalize the issuance of the common and preferred shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit April 1 To record issuance of common shares) April 1 To record issuance of preferred shares)

Explanation / Answer

Journal Entries :-

Date Particulars Debit ($) Credit ($) April 1 Cash A/c Dr. (53400*$16) 854400 To Common Stock A/c (53400*$5) 267000 To Paid in capital in excess of par value -Common (53400*$11) 587400 (To record issuance of common shares) April 1 Cash A/c Dr.(3500*$5) 17500 To Preferred Stock A/c (3500*$1) 3500 To Paid in Capital in excess of par value - Preferred (3500*$4) 14000 (To record issuance of Preferred Shares)

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