Question

To expand operations, Aragon Consulting issued 187,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for $32 per share. Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sale of the above stock. Sale of above stock if the par value was $5 per share.

Answer 1

The answer is given below;

Step-by-step explanation:

1.Stock issued with par value of $1

Cash 187,000*32 Dr.$ 5,984,000

Common Stocks 187,000*1 Cr.$187,000

Paid in Capital-Common stocks 187,000*(32-1) Cr.$5,797,000

2.Stock issued with par value of $5

Cash 187,000*32 Dr.$5,984,000

Common Stocks 187,000*5 Cr.$935,000

Paid in Capital-Common Stocks 187,000*(32-5) Cr.$5,049,000