Question

Osage Corporation issued 2,000 shares of stock.

Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

(a)		The stock had a par value of $5 per share and was issued for a total of $52,000.
(b)		The stock had a stated value of $5 per share and was issued for a total of $52,000.
(c)		The stock had no par or stated value and was issued for a total of $52,000.
(d)		The stock had a par value of $5 per share and was issued to attorneys for services during incorporation valued at $52,000.
(e)		The stock had a par value of $5 per share and was issued for land worth $52,000.

No.	Account Titles and Explanation	Debit	Credit
(a)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(b)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(c)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(d)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(e)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

Answer 1

Solution:

Osage Corporation
Journal Entries
Event	Particulars	Debit	Credit
a	Cash Dr	$52,000.00
	To Common stock		$10,000.00
	To Paid in capital in excess of par - common stock		$42,000.00
	(To record issue of common stock)
b	Cash Dr	$52,000.00
	To Common stock		$10,000.00
	To Paid in capital in excess of stated value - common stock		$42,000.00
	(To record issue of common stock)
c	Cash Dr	$52,000.00
	To Common stock		$52,000.00
	(To record issue of common stock)
d	Organization expense Dr	$52,000.00
	To Common stock		$10,000.00
	To Paid in capital in excess of par - common stock		$42,000.00
	(To record issue of common stock to attorneys for services during incorporation)
e	Land Dr	$52,000.00
	To Common stock		$10,000.00
	To Paid in capital in excess of par - common stock		$42,000.00
	(To record issue of common stock for land)