Question

Prepare journal entries to record each of the following four separate issuances of stock 1 A corporation issued 5.000 shares of $30 par value common stock for $180,000 cash 2. A corporation issued 2,500 shares of no-par common stock to its promoters in exchange for the lions estimated to be worth $23,000. The stock has a si per share stated value 3. A corporation issued 2.500 shares of no-par common stock to its promoters in exchange for the efforts, estimated to be worth $23.000. The stock has no stated value 4. A corporation issued 1250 shares of $50 par value preferred stock for $85,500 cash View transaction list Journal entry worksheet Record the issue of 5,000 shares of $30 par value common stock for $180,000 cash. Note: Enter debits before credits. Debit Credit General Journal Transaction Clear entry Record entry

Answer 1

Journal entry

No	Account and explanation	Debit	Credit
1	Cash	180000
	Common Stock (5000*30)		150000
	Paid in capital in excess of par value-Common Stock		30000
2	Organization expense	23000
	Common Stock		2500
	Paid in capital in excess of stated value-Common Stock		20500
3	Organization expense	23000
	Common Stock		23000
4	Cash	85500
	Preferred stock (1250*50)		62500
	Paid in capital in excess of par value-Preferred Stock		23000