Prepare journal entries to record the following four separate issuances of stock
ID: 2591598 • Letter: P
Question
Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 8,000 shares of $20 par value common stock for $192,000 cash. 2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,000. The stock has a $1 per share stated value. 3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,000. The stock has no stated value. 4. A corporation issued 2,000 shares of $75 par value preferred stock for $183,000 cash.
Explanation / Answer
1 Cash 192000 Common stock. $20 par value 160000 Paid-in capital in excess of par value, Common stock 32000 2 organization expenses 33000 Common stock, $1 stated value 4000 Paid-in capital in excess of stated value, common stock 29000 3 organization expenses 33000 Common stock, no-par value 33000 4 Cash 183000 Preferred stock, $75 par value 150000 Paid-in capital in excess of par value, preferred stock 33000