Question

Colorado Corporation has two classes of​ stock: common, ​$3 par​ value; and​ preferred, ​$30 par value.Requirements1.Journalize Colorado​'s issuance of 4,500 shares of common stock for $ 6 per share.2.Journalize Colorado​'s issuance of 4,500 shares of preferred stock for a total of $ 135,000.

Answer 1

Answer:

1)

Debit   Cash/Bank 27,000    (4,500 shares x $6 per share)

Credit  Common Stock 13,500  (4,500 shares x $3 per share)

Credit  Paid-In Capital in Excess of Stated Value—Common 13,500  (4,500 shares x $3 per share)

2)

Debit   Cash/Bank 135,000  (4,500 shares x $30 per share)

Credit  preferred Stock 135,000  (4,500 shares x $30 per share)

Explanation:

any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"