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

A corporation issued 8,000 shares of $10 par value common stock for $96,000 cash.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has a $1 per share stated value.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has no stated value.

A corporation issued 2,000 shares of $50 par value preferred stock for $136,500 cash.

------------------------

1. Record the issue of 8,000 shares of $10 par value common stock for $96,000 cash.

2. Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has a $1 per share stated value.

3. Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has no stated value.

4. Record the issue of 2,000 shares of $50 par value preferred stock for $136,500 cash.

Question

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

A corporation issued 8,000 shares of $10 par value common stock for $96,000 cash.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has a $1 per share stated value.

A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has no stated value.

A corporation issued 2,000 shares of $50 par value preferred stock for $136,500 cash.

------------------------

1. Record the issue of 8,000 shares of $10 par value common stock for $96,000 cash.

2. Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has a $1 per share stated value.

3. Record the issue of 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $36,500. The stock has no stated value.

4. Record the issue of 2,000 shares of $50 par value preferred stock for $136,500 cash.

Accepted Answer

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

Question

Prepare journal entries to record the following four separate issuances of stock. A corporation issued 8,000 shares of $10 par value common stock for $96,000

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Introduction To Government And Not For Profit Accounting

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question