Question

Prepare journal entries to record the following four separate issuances of stock.

A corporation issued 8,000 shares of $10 par value common stock for $96,000 cash.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,000. The stock has a $1 per share stated value.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,000. The stock has no stated value.

A corporation issued 2,000 shares of $50 par value preferred stock for $142,000 cash.

  

Answer 1

	Account Heading		Debit	Credit
	Cash		96,000
	Common Stock, $10 par Value (8000*10)			80,000
	Paid in Capital in excess of par value- Common			16,000
	Organisation expense		42,000
	Common Stock, $1 stated value (4000*1)			4,000
	Paid in Capital in excess of stated value- Common			38,000
	Organisation expense		42,000
	Common Stock, no par			42,000
	Cash		142,000
	Preferred Stock, $ 50 par value (2000*50)			100,000
	Paid in Capital in excess of par value- Preferred			42,000