Exercise 11 3 Recording stock issuances LO P1 Prepare journal entries to record the following four separate issuances of stock A corporation issued 7,000 shares of $20 par value common stock for $168,000 cash A corporation issued 3,500 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000 The stock has a $1 per share stated value A corporation issued 3,500 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000 The stock has no stated value A corporation issued 1,750 shares of $75 par value preferred stock for $156,250 cash 1 Record the issue of 7,000 shares of $20 par value common stock for $168,000 cash 2 Record the issue of 3,500 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000 The stock has a $1 per share stated value 3 Record the issue of 3,500 shares of no par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000 The stock has no stated value 4 Record the issue of 1,750 shares of $75 par value preferred stock for $156,250 cash

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 27, 2024

Exercise 11-3 Recording stock issuances LO P1

Prepare journal entries to record the following four separate issuances of stock.

A corporation issued 7,000 shares of $20 par value common stock for $168,000 cash.
A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000. The stock has a $1 per share stated value.
A corporation issued 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000. The stock has no stated value.
A corporation issued 1,750 shares of $75 par value preferred stock for $156,250 cash.

1

Record the issue of 7,000 shares of $20 par value common stock for $168,000 cash.
2

Record the issue of 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000. The stock has a $1 per share stated value.
3

Record the issue of 3,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $25,000. The stock has no stated value.
4

Record the issue of 1,750 shares of $75 par value preferred stock for $156,250 cash.