Question

Prepare the journal entry to record Jevonte Company’s issuance of 35,000 shares of its common stock assuming the shares have a: $3 par value and sell for $22 cash per share. $3 stated value and sell for $22 cash per share.

Answer 1

Answer: Please see answer in explanation column

Step-by-step explanation:

a)journal entry to record Jevonte Company’s issuance at $3 par value and $22 cash per share

Account Debit Credit

Cash(35,000 x $22) $770,000

Common stock, $3 par value(35,000 x 3) $105, 000

Paid-in captial in excess of par value, common stock

($770,000 - $105, 000 ) $665,000

b)journal entry to record Jevonte Company’s issuance at $3 stated value and $22 cash per share

Account Debit Credit

Cash (35,000 x $22) $770,000

Common stock, $3 stated value (35,000 x 3) $105, 000

Paid-in captial in excess of stated value, common stock

($770,000 - $105, 000 ) $665,000