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22 June, 21:11

Prepare journal entries to record the following four separate issuances of stock.

A. A corporation issued 7,000 shares of $10 par value common stock for $84,000 cash.

B. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $49,000. The stock has a $1 per share stated value.

C. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $49,000. The stock has no stated value.

D. A corporation issued 1,750 shares of $50 par value preferred stock for $136,500 cash.

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  1. 23 June, 00:08
    0
    A.

    Debit Credit

    Cash $84,000

    Common stock $70,000

    Paid-In Capital in Excess of Par Value $14,000

    It's necessary to split the equity in two accounts because there is information about the par value

    B.

    Promotion Expenses $49,000

    Common Stock $3,500

    Paid-In Capital in Excess of Par Value $45,500

    It's necessary to split the equity in two accounts because there is information about the par value

    C

    Promotion Expensese $49,000

    Common Stock $49,000

    It's not necessary to split the equity in two accounts because there is no information about the par value

    D.

    Cash $136,500

    Preferred Stock $87,500

    Paid-In Capital in Excess of Par Value $49,000

    It's necessary to split the equity in two accounts because there is information about the par value
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