Exercise 10-43 (Algorithmic) Issuing Common Stock Valdez Manufacturing sold 22,2
ID: 2430413 • Letter: E
Question
Exercise 10-43 (Algorithmic)
Issuing Common Stock
Valdez Manufacturing sold 22,200 shares of common stock to stockholders at the time of its incorporation. Valdez received $24.40 per share for the stock.
1. Assume that the stock has a $20 par value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.
2. Assume that the stock has a $15 stated value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.
1. Assume that the stock has a $20 par value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.
2. Assume that the stock has a $15 stated value per share. Prepare the journal entry to record the sale and issue of the stock. If an amount box does not require an entry, leave it blank.
Explanation / Answer
Journal entry :
No Account and explanation debit credit Cash (22200*24.40) 541680 Common Stock 444000 Paid in capital in excess of par value-Common Stock 97680 (To record issue common Stock) Cash 541680 Common Stock 333000 Paid in capital in excess of stated value-Common Stock 208680 (To record issue common Stock)Related Questions
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