Osage Corporation issued 4,250 shares of stock. Prepare the entry for the issuan
ID: 2484599 • Letter: O
Question
Osage Corporation issued 4,250 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. Round answers to 0 decimal places, e.g. 5,650.) (a) The stock had a par value of $7 per share and was issued for a total of $51,000. (b) The stock had a stated value of $7 per share and was issued for a total of $51,000. (c) The stock had no par or stated value and was issued for a total of $51,000. (d) The stock had a par value of $7 per share and was issued to attorneys for services during incorporation valued at $51,000. (e) The stock had a par value of $7 per share and was issued for land worth $51,000.
Explanation / Answer
Answer: (a) Common stock =4250 share*$7=$29750
Cash A/C Dr. $51000
To Common stock A/C $29750
To Paid-in-capital in excess of par common stock A/c $21250
Answer:(b)
Cash A/C Dr. $51000
To Common stock A/C $29750
To Paid-in-capital in excess of stated value common stock A/c $21250
Answer:(c)
Cash A/C Dr. $51000
To Common stock A/C $51000
Answer:(d)
Organization expense A/C Dr. $51000
To Common stock A/C $29750
To Paid-in-capital in excess of stated value common stock A/c $21250
Answer:(e)
Land A/C Dr. $51000
To Common stock A/C $29750
To Paid-in-capital in excess of stated value common stock A/c $21250
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