Question

On June 1, Forrest Inc. issues 3,000 shares of no-par common stock at a cash price of $7 per share. Journalize the issuance of the 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 Credit June 1 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Answer 1

Step-by-step explanation:

The journal entry is shown below:

Cash A/c Dr $21,000 (3,000 shares × $7)

To Common stock A/c $21,000

(Being the issuance of the shares are recorded)

For recording this transaction, we debited the cash account and credited the common stock account so that the correct posting can be done for $21,000 by considering the number of share and price per share