Exercise 11-4 Recording stock issuances LO P1

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

1. A corporation issued 10,000 shares of $10 par value common stock for $120,000 cash.
2. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has a $1 per share stated value.
3. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has no stated value.
4. A corporation issued 2,500 shares of $50 par value preferred stock for $176,500 cash.

• Record the issue of 10,000 shares of $10 par value common stock for $120,000 cash.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

• Record the issue of 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has a $1 per share stated value.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2

• Record the issue of 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $51,500. The stock has no stated value.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
3

• Record the issue of 2,500 shares of $50 par value preferred stock for $176,500 cash.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
4