Answer:
A. Dr Cash $24,000
Cr common stock $20,000
Cr paid in capital in excess of par-value common stock $4,000
B. Dr organization Expense $52,000
Cr common stock $5,000
Cr paid in capital in excess of par-value common stock $47,000
C. Dr organization expense $52,000
Cr Common Stock $52,000
D. Dr Cash $89,500
Cr Preferred stock $37,500
Cr paid in capital in excess of par-value common stock $52,000
Explanation:
Preparation of the journal entries to record each of the following four separate issuances of stock
A. Dr Cash $24,000
Cr common stock $20,000
(2000*10)
Cr paid in capital in excess of par-value common stock $4,000
($24,000-$20,000)
B. Dr organization Expense $52,000
Cr common stock $5,000
(1,000*$5)
Cr paid in capital in excess of par-value common stock $47,000
($52,000-$5,000)
C. Dr organization expense $52,000
Cr Common Stock $52,000
D. Dr Cash $89,500
Cr Preferred stock $37,500
(500*$75)
Cr paid in capital in excess of par-value common stock $52,000
($89,500-$37,500)
