Exercise 11-4 Novak Corp. issued 3,000 shares of stock. Prepare the entry for th

Question

Exercise 11-4 Novak Corp. issued 3,000 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. 5,675. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) The stock had a par value of $9.75 per share and was issued for a total of $49,500. (b) The stock had a stated value of $9.75 per share and was issued for a total of $49,500. (c) The stock had no par or stated value and was issued for a total of $49,500. (d) The stock had a par value of $9.75 per share and was issued to attorneys for services during incorporation valued at $49,500. (e) The stock had a par value of $9.75 per share and was issued for land worth $49,500.

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)

(d)

(e)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)

(d)

(e)

Explanation / Answer

The total no of shares 3000

Journal entries to record the entries as below.

No Account Titles and Explanation Debit credit a Cash 49,500 Common stock (at par vat $9.75 x 3000 shares) 29,250 Paid in capital in excess of par value ($49500-$29250) 20,250 b Cash 49,500 Common stock (at stated value $9.75 x 3000 shares) 29,250 Paid in capital in excess of stated value ($49500-$29250) 20,250 c Cash 49,500 Common stock 49,500 d Attorney Fees 49,500 Common stock 29,250 Paid in capital in excess of par value ($49500-$29250) 20,250 e Land 49,500 Common stock 29,250 Paid in capital in excess of par value ($49500-$29250) 20,250

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