Answer:
<u>JOURNAL ENTRY</u>
Dr. Cash..................58,000
Cr. Common Stock....................33,300
Cr. Additional Paid in Capital..24,700
Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium
Explanation:
(a) The stock had a par value of $9 per share and was issued for a total of $58,000.
<u>JOURNAL ENTRY</u>
Dr. Cash..................58,000
Cr. Common Stock....................33,300
Cr. Additional Paid in Capital..24,700
Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium
(b) The stock had a stated value of $9 per share and was issued for a total of $58,000.
<u>JOURNAL ENTRY</u>
Dr. Cash..................58,000
Cr. Common Stock....................33,300
Cr. Additional Paid in Capital..24,700
Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium
(c) The stock had no par or stated value and was issued for a total of $58,000.
<u>JOURNAL ENTRY</u>
Dr. Cash..................58,000
Cr. Common Stock............58,000
Being issuance of 3700 common stock with no stated value per share
(d) The stock had a par value of $9 per share and was issued to attorneys for services during incorporation valued at $58,000.
<u>JOURNAL ENTRY</u>
Dr. Service fees..................58,000
Cr. Common Stock.........................33,300
Cr. Additional Paid In capital........24,700
Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for attorney fees
(e) The stock had a par value of $9 per share and was issued for land worth $58,000.
<u>JOURNAL ENTRY</u>
Dr. Service fees..................58,000
Cr. Common Stock.........................33,300
Cr. Additional Paid In capital........24,700
Being issuance of 3,700 shares of common stock at par value of $9 per share, with premium; for acquisition of land.
