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

(1) A corporation issued 8,000 shares of $10 par value common stock for $96,000 cash.
(2) A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,500. The stock has a $1 per share stated value.
(3) A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $42,500. The stock has no stated value.
(4) A corporation issued 2,000 shares of $100 par value preferred stock for $242,500 cash.

Answer :

Answer:

Explanation:

1)

Cash...................................................   96,000

      Common Stock, $10 Par value (8000 X $10).......................................80,000

       Paid-in Capital in Excess of Par—Common Stock............................16,000

2)

Organisation expenses.................................................42,500

    Common stock, $1 stated value........................................................4,000

     Paid in capital in excess of stated value-common stock............38,500

3)

Organisation expenses...............................................42,500

    Common Stock, No par value...................................42,500

4)

Cash................................................................................242,500

             Preferred stock, $100 par value...........................(100*2000)200,000

             Paid in Capital in excess of par--preferred stock................. 42,500

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