Answer:
Debit Cash account $57,000
Credit Shares capital $3,000
Credit Share premium $54,000
Being entries to record cash received from the issuance of shares
Explanation:
Par value per share = $1
Issue price per share = $19
Premium per share from issue = $19 - $1
= $18
Number of issued shares = 3000
Share capital balance from issue = 3000 × $1
= $3000
Premium balance = 3000 × $18
= $54,000
Cash received from Issue = 3000 × $19
= $57,000
Entries to be posted
Debit Cash account $57,000
Credit Shares capital $3,000
Credit Share premium $54,000
Being entries to record cash received from the issuance of shares.
