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Share Issuances for Cash Minaret, Inc., issued 10,000 shares of $50 par value preferred stock at...

Share Issuances for Cash

Minaret, Inc., issued 10,000 shares of $50 par value preferred stock at $68 per share and 12,000 shares of no-par value common stock at $15 per share. The common stock has no stated value. All issuances were for cash.

a. Prepare the journal entries to record the share issuances.
b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $4 per share.
c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $2 per share.

General Journal
Ref. Description Debit Credit
a. AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Preferred Stock Answer Answer
AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Issued 10,000 shares of preferred stock.
AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Issued 12,000 shares of no-par value common stock.
b. AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Common Stock Answer Answer
AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Issued 12,000 shares of no-par common stock, statedvalue of $4, at $15 per share.
c. AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Common Stock Answer Answer
AnswerCashCommon StockNo-Par Value Common StockPaid-in-Capital in Excess of Par Value - Common StockPaid-in-Capital in Excess of Par Value-Preferred StockPaid-in-Capital in Excess of Stated Value - Common StockPreferred Stock Answer Answer
Issued 12,000 sharesat $2 par value common stock at$15 per share.

Solutions

Expert Solution

Debit Credit
a Cash 680000 =10000*68
     Preferred Stock 500000 =10000*50
     Paid-in-Capital in Excess of Par Value-Preferred Stock 180000
Issued 10,000 shares of preferred stock.
Cash 180000 =12000*15
       Common Stock No-Par Value 180000
Issued 12,000 shares of no-par value common stock.
b Cash 180000 =12000*15
     Common Stock 48000 =12000*4
     Paid-in-Capital in Excess of Stated Value - Common Stock 132000
Issued 12,000 shares of no-par common stock, stated value of $4, at $15 per share.
c Cash 180000 =12000*15
     Common Stock 24000 =12000*2
     Paid-in-Capital in Excess of Par Value - Common Stock 156000
Issued 12,000 shares at $2 par value common stock at $15 per share.

ekkarill92 answered 2 years ago
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