E11-6 Recording and Reporting Stockholders Equity Transactions [LO 11-2, LO 11-4

Question

E11-6 Recording and Reporting Stockholders Equity Transactions [LO 11-2, LO 11-4] 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 $10. During the year, the following selected transactions occurred a. Collected $36 cash per share from four individuals and issued 4,600 shares of common stock to each b. Issued 5,600 shares of common stock to an outside investor at $36 cash per share. c. Issued 7,600 shares of preferred stock at $24 cash per share. Required 1. Prepare the joumal entries indicated for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the issuance to four individuals of 4,600 shares each of common stock with no par value for a price of $36 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Explanation / Answer

General Journal Debit Credit a Cash    165,600.00 To Common Stock    165,600.00 (Being Common Stock issued) b Cash    201,600.00 To Common Stock    201,600.00 (Being Common Stock issued) c Cash    182,400.00 To Preferred Stock      76,000.00 To Additional Paid-in Capital, Preferred    106,400.00 (Being Preferred Stock issued)

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