Question

Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)
May 19: Issued 2,000 shares of $1 par value common stock for cash of $10.00 per share.
Date Accounts Debit Credit
May 19 Cash 20,000 Paid-In Capital in Excess of Par—Common Common Stock—$1 Par Value 18,000 2,000
Jun. 3: Issued 200 shares of $2, no-par preferred stock for $10,000 cash. Date Accounts Debit Credit Jun. 3 Cash 10,000 Preferred Stock—No Par Value 10,000
Jun. 11: Received equipment with a market value of $78,000 in exchange for 8,000 shares of the $1 par value common stock. Date Accounts Debit Credit Jun. 11 78,000 Equipment Common Stock-$1 Par Value Paid-In Capital in Excess of Par—Common 8,000 70,000
Requirement 2. How much paid-in capital did these transactions generate for Sasha Systems? Total paid-in capital generated from these transactions amounts to $

Answer 1

Answer:

1) May 19: Issued 2,000 shares of $1 par value common stock for cash of $10.00 per share.

Dr Cash 20,000

    Cr Common stock 2,000

    Cr Additional paid in capital 18,000

Jun. 3: Issued 200 shares of $2, no-par preferred stock for $10,000 cash.

Dr Cash 10,000

    Cr ´Preferred stock 10,000

Jun. 11: Received equipment with a market value of $78,000 in exchange for 8,000 shares of the $1 par value common stock.

Dr Equipment 78,000

    Cr Common stock 8,000

    Cr Additional paid in capital 70,000

2) Total paid in capital = $20,000 + $10,000 + $78,000 = $108,000