Question

Exercise 13-04 a-e Bramble Corporation issued 3,100 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,650.) (a) The stock had a par value of $10 per share and was issued for a total of $49,500. (b) The stock had a stated value of $10 per share and was issued for a total of $49,500. (c) The stock had no par or stated value and was issued for a total of $49,500. (d) The stock had a par value of $10 per share and was issued to attorneys for services during incorporation valued at $49,500. (e) The stock had a par value of $10 per share and was issued for land worth $49,500.

Answer 1

Cash 49,500 debit

Common Stock 31,000 credit

Additional paid.in 18,500 credit

--to record issuance of shares--

legal fees expense 49,500 debit

Common Stock 31,000 credit

Additional paid.in 18,500 credit

--to record issuance of shares for services--

land 49,500 debit

Common Stock 31,000 credit

Additional paid.in 18,500 credit

--to record issuance of shares for land --

Cash 49,500 debit

Common Stock 49,500 credit

--to record issuance of no-par stock--

Step-by-step explanation:

We will compare the amount collected from the shares issued against the face value to get the amount of additional paid-in:

3,100 shares x $10 = 31,000

we collect $ 49,500

additional paid-in 18,500

When there is a no-par value we post the entire amount against common stock.