Ava School of Learning obtained a charter at the start of the year that authoriz
ID: 2590281 • Letter: A
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 $10. During the year, the following selected transactions occurred: a. Collected $39 cash per share from four individuals and issued 4,900 shares of common stock to each. b. Issued 5,900 shares of common stock to an outside investor at $39 cash per share. c. Issued 7,900 shares of preferred stock at $21 cash per share. Required 1. Prepare the journal 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 4,900 shares each of common stock with no par value for a price of $39 per share. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journalExplanation / Answer
Journal entries for each of these transactions
a)collected $39 cash per share from four individuals and issued 4,900shares of common stock to each :
cash (4,900*$40*4) $784,000
common stock $784,000
b)issued 5,900 shares of common stock to an outside investor at $39 cash per share :
cash (5,900*39) $230,100
common stock $230,100
c) issued 7,900 shares of preference stock at $21 cash per share
cash (7,900*21) $165,900
preference stock $82,950
Additional paid in cash ,preferred $82,950
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.