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Exercise 11-4 Recording stock issuances LO P1 Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 10,000

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

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