please answer and explain 1-4 Prepare journal entries to record the following fo

Question

please answer and explain 1-4

Prepare journal entries to record the following four separate issuances of stock. 1. A corporation issued 9,000 shares of $20 par value common stock for $216,000 cash. 2. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has a $1 per share stated value. 3. A corporation issued 4,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has no stated value. 4. A corporation issued 2,250 shares of $25 par value preferred stock for $101,750 cash. View transaction list Journal entry worksheet 4 Record the issue of 9,000 shares of $20 par value common stock for $216,000 cash. Note: Enter debits before credits. Transaction General Journal Debit Credit

Explanation / Answer

Solution:

Transaction

General Journal

Debit

Credit

1)

Cash

$216,000

Common Stock (9,000 Shares x Par $20)

$180,000

Pain In Capital in Excess of Par - Common Stock (Bal Fig)

$36,000

(Issued 9000 Shares of $20 par value common stock for $216,000 cash)

2)

Organization Expense

$45,500

Common Stock, $1 stated value (4500 Shares x $1)

$4,500

Pain In Capital in Excess of Par - Common Stock (Bal Fig)

$41,000

(Issue 4500 Shares of $1 stated value common stock to promoters in exchange for their efforts, estimated to be worth $45,500

3)

Organization Expense

$45,500

Common Stock, no par value

$45,500

4)

Cash

$101,750

Preferred Stock, $25 Par Value (2250 Shares x $25)

$56,250

Paid in Capital in Excess of Par - Preferred Stock (Bal fig)

$45,500

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Transaction

General Journal

Debit

Credit

1)

Cash

$216,000

Common Stock (9,000 Shares x Par $20)

$180,000

Pain In Capital in Excess of Par - Common Stock (Bal Fig)

$36,000

(Issued 9000 Shares of $20 par value common stock for $216,000 cash)

2)

Organization Expense

$45,500

Common Stock, $1 stated value (4500 Shares x $1)

$4,500

Pain In Capital in Excess of Par - Common Stock (Bal Fig)

$41,000

(Issue 4500 Shares of $1 stated value common stock to promoters in exchange for their efforts, estimated to be worth $45,500

3)

Organization Expense

$45,500

Common Stock, no par value

$45,500

4)

Cash

$101,750

Preferred Stock, $25 Par Value (2250 Shares x $25)

$56,250

Paid in Capital in Excess of Par - Preferred Stock (Bal fig)

$45,500

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