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20 October, 11:54

Eastport Inc. was organized on June 5, Year 1. It was authorized to issue 300,000 shares of $10 par common stock and 50,000 shares of 5 percent cumulative class A preferred stock. The class A stock had a stated value of $50 per share. The following stock transactions pertain to Eastport Inc.: Issued 15,000 shares of common stock for $12 per share. Issued 5,000 shares of the class A preferred stock for $51 per share. Issued 60,000 shares of common stock for $15 per share. Prepare general journal entries for these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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  1. 20 October, 12:14
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    The journal entries have been given as under;

    Explanation:

    Cash 15,000*12 Dr.$180,000

    Common Stocks 15,000*10 Cr.$150,000

    paid in capital-common stock 15,000 * (12-10) Cr.$30,000

    Cash 5,000*51 Dr.$255,000

    Preferred stocks 5,000*50 Cr.$250,000

    Paid in Capital-preferred stock 5,000*1 Cr.$5,000

    Cash 60,000*15 Dr.$900,000

    Common Stocks 60,000*10 Cr.$600,000

    Paid in Capital-common stocks 60,000 * (15-10) Cr.$300,000
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