Journal entries to record the issuance of capital stock Prepare journal entries under U.S. GAAP to record

Question:

Journal entries to record the issuance of capital stock Prepare journal entries under U.S. GAAP to record the issuance of capital stock in each of the following independent cases. You may omit explanations for the journal entries. A firm does the following:

a. Issues 50,000 shares of $5 par value common stock for $30 per share.

b. Issues 20,000 shares of $100 par value convertible preferred stock at par.

c. Issues 16,000 shares of $10 par value common stock in the acquisition of a patent. The shares of the firm traded on a stock exchange for $15 per share on the day of the transaction. The seller listed the patent for sale at $250,000.

d. Issues 25,000 shares of $1 par value common stock in exchange for convertible preferred stock with a par and carrying value of $400,000. The common shares traded on the market for $18 per share on the date of the transaction. Use the carrying value method to record the conversion.

e. Issues 5,000 shares of $10 par value common stock to employees as a bonus for reaching sales goals for the year. The shares traded for $12 per share on the day of the transaction.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...