Question

Question 7 (6 points) On January 2, 2016, Alpha Corporation issued 2,500 shares of $5 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,000 shares of its $100 par 5% cumulative preferred stock for $105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. B Format General Journal: Debit Credit Date Accounts </> Question 8 (6 points) On January 2, 2016, Alpha Corporation issued 2,500 shares of $4 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,000 shares of its $100 par 5% cumulative preferred stock for S107 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. в I U Format ... General Journal: GO

Answer 1

Question 7:

Journal Entries:

Date	Accounts	Debit	Credit
Jan. 2, 2016	Cash (2,500 shares * $15 per share)	$37,500
	Common Stock (2,500 shares * $5 per share)		$12,500
	Paid-in Capital in Excess of Par - Common Stock ($15 - $5 = $10 * 2,500)		$25,000
	(To record the issue of common stock)
Jan. 15, 2016	Cash (1,000 shares * $105 per share)	$105,000
	5% Preferred Stock (1,000 shares * $100 per share)		$100,000
	Paid-in Capital in Excess of Par - Preferred Stock ($105 - $100 = $5 * 1,000)		$5,000
	(To record the issue of preferred stock)

Question 2:

Journal Entries:

Date	Accounts	Debit	Credit
Jan. 2, 2016	Cash (2,500 shares * $15 per share)	$37,500
	Common Stock (2,500 shares * $4 per share)		$10,000
	Paid-in Capital in Excess of Par - Common Stock ($15 - $4 = $11 * 2,500)		$27,500
	(To record the issue of common stock)
Jan. 15, 2016	Cash (1,000 shares * $107 per share)	$107,000
	5% Preferred Stock (1,000 shares * $100 per share)		$100,000
	Paid-in Capital in Excess of Par - Preferred Stock ($107 - $100 = $7 * 1,000)		$7,000
	(To record the issue of preferred stock)