Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so far Exercise 11-4 Recording stock issuances LO P1 214 Prepare journal entries to record each of the following four separate issuances of stock 1. A corporation issued 7000 shares of $10 par value common stock for $84,000 cash 2. A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $29,000. The stock has a si per share stated value 3. A corporation issued 3,500 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $29.000 The stock has no stated value 4. A corporation issued 1750 shares of $75 par value preferred stock for $160.250 cash No Transaction Dobilt Credit Answer is complete but not entirely correct. General Journal Cash Common shock 510 par value Paid in capital in excess of par value. Common stock 70 000 Organisation expenses Common lock 51 value Paldin Capital in exces para com Organization expenses Common stock no par value . 157750 D 4 Cash Preferred stock 575 par value Paid in capital in excess of par value preferred stock

Answer 1

Solution:

Journal entries
S.no.	Particulars	Debit	Credit
1	Cash	$84,000
	Common stock, $10 par value		$70,000
	Paid in Capital in excess of Par Value- Common Stock		$14,000
2	Organization Expense	$29,000
	Common stock, $1 stated value		$3,500
	Paid in Capital in excess of stated Value- Common Stock (29000-3500)		$25,500
3	Organization Expense	$29,000
	Common stock, no par value		$29,000
4	Cash (1750*$160.250)	$2,80,438
	Preferred stock, $75 par value (1750*75)		$1,31,250
	Paid in Capital in excess of Par Value- Preferred Stock		$1,49,188