Question

Prepare journal entries to record the following four separate issuances of stock.

Answer 1

Answer:

Explanation:

1)

Cash...................................................   96,000

      Common Stock, $10 Par value (8000 X $10).......................................80,000

       Paid-in Capital in Excess of Par—Common Stock............................16,000

2)

Organisation expenses.................................................42,500

    Common stock, $1 stated value........................................................4,000

     Paid in capital in excess of stated value-common stock............38,500

3)

Organisation expenses...............................................42,500

    Common Stock, No par value...................................42,500

4)

Cash................................................................................242,500

             Preferred stock, $100 par value...........................(100*2000)200,000

             Paid in Capital in excess of par--preferred stock................. 42,500