Register
When a company issues 37,000 shares of par value common stock for $10 per share, the journal entry for this issuance would include
440,447 views
0 votes
0 votes
When a company issues 37,000 shares of par value common stock for $10 per share, the journal entry for this issuance would include

User Avimehenwal
by
2.5k points

1 Answer

12 votes
12 votes

Step-by-step explanation:

Given a par value of $ 1 , and an issue price of $ 10 , the shares were issued at a premium of ( 10 -1 = ) $ 9 . Therefore , the journal entry are as follows . Debit Cash Account ( 37,000 * $ 10 ) = $ 370,000 Credit Common Stock Account ( 37,000 * $ 1 ) = $ 37,000 Credit Share Premium Account ( 37,000 * $ 9 ) = $ 333,000 .

I search it.

User Colin Ramsay
by
3.1k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If the rate of inflation in Japan dramatically increases while the rate of inflation in the United States remains constant, then a. the demand curve for dollars shifts to the left. b. the demand curve
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
In January of the current year, Dora made a gift of stock to her granddaughter. At the time of the gift, the stock was worth $15,000. Several months later in the same year after the gift, a $500 dividend
Which statement best describes the difference between an epidemic and a pandemic? A pandemic lasts for a long time, and an epidemic lasts only a short period of time. A pandemic involves many deaths, and
Link Copied!