Question

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

A corporation issued 9,000 shares of $10 par value common stock for $108,000 cash.
A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,000. The stock has a $1 per share stated value.
A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,000. The stock has no stated value.
A corporation issued 2,250 shares of $100 par value preferred stock for $268,000 cash.
Record the issue of 9,000 shares of $10 par value common stock for $108,000 cash.
Record the issue of 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,000. The stock has a $1 per share stated value.
Record the issue of 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $43,000. The stock has no stated value.
Record the issue of 2,250 shares of $100 par value preferred stock for $268,000 cash.
Note: Enter debits before credits.

Transaction General Journal Debit Credit
1

Answer 1

A journal entry was prepared in recording of four separate issuances odf stock has shown in the explanation section

Step-by-step explanation:

Solution

We prepare a journal entries to record the following four separate issuances of stock.

JOURNAL ENTRIES

Scenario Account Titles and Debit Credit

Explanation

(1) Cash $108

Common stock $90,000

Paid in capital in excess $18,000

(2) Formation expense $43,000

Common stock $4,500

Paid in capital in excess stated $38,500

(3) Formation expense $43,000

Common stock $43,000

(4) Cash $268,000

Preferred stock $225,000

Paid in capital in excess of

par preferred $43,000