Answer:
The journal entry to record Zende Company’s issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be
Debit Credit
Cash $330,000
Common stock $330,000
The journal entry to record Zende Company’s issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be
Debit Credit
Cash $396,000
Common stock $330,000
Paid in capital in excess of par value $66,000
Explanation:
The journal entry to record Zende Company’s issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be as follows:
Debit Credit
Cash $330,000
Common stock $330,000
Par values of the share of common stock=$66,000*5
Par values of the share of common stock=$330,000
The journal entry would be prepared by debiting cash and crediting common stock by $330,000
The journal entry to record Zende Company’s issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be as follows:
Debit Credit
Cash $396,000
Common stock $330,000
Paid in capital in excess of par value $66,000
cash=66,000*$6
cash=$396,000
Common stock=$66,000*5=$330,000
Paid in capital in excess of par value=$396,000-$330,000=$66,000
