Entries for Issuing Stock

On January $22,$ Zentric Corporation issued for cash $160,000$ shares of no$-$par common stock at $$8.$ On February $14,$ Zentric issued at par value $45,000$ shares of preferred $2\%$ stock, $$50$ par for cash. On August $30,$ Zentric issued for cash $10,000$ shares of preferred $2\%$ stock, $$50$ par at $$56.$

Journalize the entries to record the January $22,$ February $14,$ and August $30$ transactions. If an amount box does not require an entry, leave it blank.

Jan. $22$

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$x$

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$$ Feb. $14$

Preferred Stock $$

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Aug. $30$

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Paid$-$In Capital in Excess of Par$-$Preferred Stock $q,$

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$$ Check My Work

Recall that a separate account is used for recording the amount of each class of stock issued to investors in a corporation. Recall the definition of legal capital and what affect that has on recording the sale of stock.