Answer: PLease find answers in explanation column
Explanation:
1. Being issued for common stock at $20 par value
Account Debit Credit
Cash $96,000
Common stock at $20 par value (4000 x 20) $80,000
Paid in excess capital of par Common stock $16,000
($96,000 - $80,000)
2. Being issued for stated stock at $1 to promoters
Account Debit Credit
0rganisation expenses $20,500
Common stock at $1 stated value (2000 x 1) $2,000
Paid in excess capital of par Common stock
($20,500 - $2,000 $18,500
3. Being issued to promoters at no stated value
Account Debit Credit
Organization expenses $20,500
Common stock, no-par value $20,500
4. Being issued at preferred stock of $50 par value
Account Debit Credit
Cash $242,500
Preferred stock at $50 par value (1000 x 50) $50,000
Paid in excess capital of par Preferred stock
($242,500 - $50,000) $192,500
