Prepare journal entries to record the following four separate issuances of stock 1 A corporation issued 2,000 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $30,000 The stock has no stated value 2 A corporation issued 2,000 shares of no par commo...

1 Organization Expenses 30000 Common Stock NoPar Value 30 ...

Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 2,000

Question:

Prepare journal entries to record the following four separate issuances of stock.
1. A issued 2,000 shares of no-par to its promoters in exchange for their efforts, estimated to be worth $30,000. The stock has no stated value.
2. A issued 2,000 shares of no-par to its promoters in exchange for their efforts, estimated to be worth $30,000. The stock has a $1 per share stated value.
3. A issued 4,000 shares of $10 for $70,000 cash.
4. A issued 1,000 shares of $100 preferred stock for $120,000 cash.

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...