Exercise 167 Zeus Corporation issued 5,000 shares of stock. Prepare the entry fo

Question

Exercise 167

Zeus Corporation issued 5,000 shares of stock.

Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a)
The stock had a par value of $5 per share and was issued for a total of $65,000.
(b)
The stock had a stated value of $5 per share and was issued for a total of $65,000.
(c)
The stock had a par value of $5 per share and was issued to attorneys for services during in-corporation valued at $65,000.
(d)
The stock had a par value of $5 per share and was issued for land worth $65,000.

Explanation / Answer

Journal Entries :-

S.No. Particulars Debit($) Credit($) a) Cash A/c Dr. 65000 To Common Stock A/c (5000*$5) 25000 To Paid in Capital in Excess of Par A/c ($65000-$25000) 40000 b) Cash A/c Dr. 65000 To Common Stock A/c (5000*$5) 25000 To Paid in Capital in Excess of Stated Value A/c ($65000-$25000) 40000 c) Organisation Expense A/c Dr. 65000 To Common Stock A/c (5000*$5) 25000 To Paid in Capital in Excess of Par A/c ($65000-$25000) 40000 d) Land A/c Dr. 65000 To Common Stock A/c 25000 To Paid in Capital in Excess of Par A/c ($65000-$25000) 40000

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