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

Question

1. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange

for their efforts, estimated to be worth $30,000. The stock has no stated value.

2. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange

for their efforts, estimated to be worth $30,000. The stock has a $1 per share stated value.

3. Four thousand shares of $10 par value common stock are issued for $70,000 cash.

4. One thousand shares of $100 par value preferred stock are issued for $120,000 cash.

Answer 1

1. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange for their efforts, estimated to be worth $30,000. The stock has no stated value

Dr  Organization costs $30,000

Cr  Common stock $30,000

2. Two thousand shares of no-par common stock are issued to the corporation’s promoters in exchange for their efforts, estimated to be worth $30,000. The stock has a $1 per share stated value

Dr  Organization costs $30,000

Cr  Common stock $2,000

Cr  Paid-in Capital in Excess of Stated Value $28,000

3. Four thousand shares of $10 par value common stock are issued for $70,000 cash

Dr  Cash $70,000

Cr  Common stock $40,000

Cr  Paid-in Capital in Excess of Par Value $30,000

4. One thousand shares of $100 par value preferred stock are issued for $120,000 cash

Dr  Cash $120,000

Cr  Preferred stock $100,000

Cr  Paid-in Capital in Excess of Par Value - Preferred stock  $20,000

Answer 2

Do your own homework