Question

Prepare journal entries to record each of the following four separate issuances of stock 1. A corporation issued 4,000 shares of $20 par value common stock for $96,000 cash. 2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $44,000. The stock has a $2 per share stated value. 3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $44,000. The stock has no stated value. 4. A corporation issued 1,000 shares of $100 par value preferred stock for $144,000 cash. View transaction list Journal entry worksheet 1 2 Record the issue of 4,000 shares of $20 par value common stock for $96,000 cash Note: Enter debits before credits General Journal Transaction Debit Credit View general journal Record entry Clear entry

2. Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $44,000. The stock has $2 per share stated value.
3. Record the issue of 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $44,000. The stock has no stated value.
4. Record the issue of 1,000 shares of $100 par value preferred stock for $144,000 cash.

Answer 1

1	Cash	96,000
	Common stock, $20 par (4,000*20)		80,000
	Paid in capital in excess of par - Common stock		16,000
2	Organization expenses	44,000
	Common stock, $2 stated value		4,000
	Paid in capital in excess of par - Common stock		40,000
3	Organization expenses	44,000
	Common stock, no par		44,000
4	Cash	144,000
	Preferred stock, $100, par		100,000
	Paid in capital in excess of par - Preferred		44,000