Question

Stellar Systems completed the following stock issuance transactions: (Click the icon to view the transactions.) Requirements 1. Journalize the transactions. Explanations are not required. 2. How much paid-in capital did these transactions generate for Stellar Systems? Requirement 1. Journalize the transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) May 19: Issued 1,700 shares of $3 par value common stock for cash of $10.50 per share. Date Accounts Debit Credit May 19 Jun 3: Issued 300 shares of Sº, no-par preferred stock for $15,000 cash. Date Accounts Debit Credit Jun. 3 Cash Common Stock-$3 Par Value Equipment Jun. 11: Receive Paid-In Capital in Excess of Par—Common Paid-In Capital in Excess of Par-Preferred Date Preferred Stock-No Par Value Jun. 11 Retained Earnings 5,000 shares of the $3 par value common stock Debit Credit

Answer 1

1.

Journal

May 19	Cash	17,850
	Common stock		5,100
	Paid in capital, in excess of par - Common		12,750
June 3	Cash	15,000
	Preferred stock - No par value		15,000
June 11	Equipment	68,000
	Common stock		15,000
	Paid in capital, in excess of par - Common		53,000

2.

Total paid in capital generated from the above transactions = 12,750 + 53,000

= $65,750

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