$28$

On$-$Line Learning Corporation obtained a charter at the beginning of this year that authorized $66,000$ shares of no$-$par common stock and $27,000$ shares of preferred stock, $$17$ par value. The corporation was organized by four individuals who purchased a total of $16,000$ shares of the common stock. The remaining shares were to be sold to other individuals. During the year, the following selected transactions occurred:

a$.$ Issued $4,000$ shares of common stock to each of the four organizers for $$34$ cash per share.

b$.$ Sold $5,000$ shares of common stock to an outside investor at $$68$ cash per share.

c$.$ Sold $6,000$ shares of preferred stock to an outside investor at $$51$ cash per share.

Requlred:

Prepare the journal entries for each of these transactions.

Is it ethical to sell stock to outsiders at a higher price than the amount pald by the organizers?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Prepare the journal entries for each of these transactions.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Show less

View transaction list

View journal entry worksheet

$\backslash$table$[[,$No$,$Transaction,General J$,$Debit,Credit$],[0,1,$a$.,$Cash,$544,000,$if$],[,,$Common stock, no$-$par,,$272,000],[,,$Preferred stock,,$272,000],[,2,$b$.,$Cash,$340,000,],[,,,$Common stock, no$-$par,,$180,000]]$