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3 years ago

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

Business

1 answer:

lys-0071 [83]3 years ago

3 0

Answer:

DR Cash $48,000

CR Common Stock (4,000*10) $40,000

CR Paid in Excess of Par- Common Stock $8,000

(To record common stock issued for cash)

Working

Paid in Excess of Par- Common Stock = 48,000- 40,000

= $8,000

b.No stated value

DR Organization expenses $57,000

CR Common Stock $57,000

(To record common stock issued to promoters)

DR Organization expenses $57,000

CR Common Stock (2,000 * $3) $6,000

CR Paid in Excess of Par- Common Stock $51,000

(To record common stock issued to promoters)

Working

Paid in Excess of Par- Common Stock = 57,000 - 6,000

= $51,000

DR Cash $107,000

CR Preferred Stock (1,000*50) $50,000

CR Paid in Excess of Par- Preferred Stock $57,000

(To record preferred stock issued for cash)

Working

Paid in Excess of Par- Preferred Stock

= 107,000 - 50,000

= $57,000

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