Question

On January 22, Zentric Corporation issued for cash 160,000 shares of no-par common stock at $8. On February 14, Zentric issued at par value 45,000 shares of preferred 2% stock, $50 par for cash. On August 30, Zentric issued for cash 10,000 shares of preferred 2% stock, $50 par at $56. Journalize the entries to record the January 22, February 14, and August 30 transactions. If an amount box does not require an entry, leave it blank.

Answer 1

Jan 22

Dr Cash 1,280,000

Cr Common stock 1,280,000

Feb 15

Dr Cash 2,250,000

Cr Preferred stock 2,250,000

Aug 30

Dr Cash 560,000

Cr Preferred stock 500,000

Cr Paid in capital in excess of par value-Preferred stock 60,000

Step-by-step explanation:

Journal entry

Jan 22

Dr Cash 1,280,000

(160,000 shares of no-par common stock × $8.)

Cr Common stock 1,280,000

Feb 15

Dr Cash 2,250,000

(45,000 shares ×$50 par for cash)

Cr Preferred stock 2,250,000

Aug 30

Dr Cash (10000*56) 560000

Cr Preferred stock (10000*50) 500000

Cr Paid in capital in excess of par value-Preferred stock 60000