Ava School of Learning obtained a charter at the start of the year that authoriz

Question

Ava School of Learning obtained a charter at the start of the year that authorized 50,000 shares of no-par common stock and 20,000 shares of preferred stock, par value 510. During the year, the following selected transactions occurred a. Collected $43 cash per share from four individuals and issued 5,300 shares of common stock to each b. Issued 6,300 shares of common stock to an outside investor at $43 cash per share c. Issued 8,300 shares of preferred stock at $23 cash per share Required 1. Prepare the journal entries indicated for each of these transactions (If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) View transaction list Record the issuance to four individuals of 5,300 shares each of common stock with no par value for a price of $43 per share. 1 on stock Record the issuance to an outside investor of 6,300 shares of common stock with no par value for a price of $43 per share. 2 Record the issuance of 8,300 shares of preferred stock with a par value $10 for a price of $23 per share. 3 Credit Note : O-journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

TR Account titles & Explanations Debit Credit a) Cash 227900 Common Stock 227,900 (5300*43) b) Cash 270900 common Stock 270900 (6300*43) c) Cash (8300*23) 190900 preferred stock 83000 paid in capital in excess of par 107900 Stockholders Equity' Contributed capital common stock 498800 preferred stock $10 par value 83000 paid in capital in excess of par 107900 total contributed capital 689700 Retained Earnings 39,000 Total Stockholders Equity 728700

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