Connect Solved: Foxburo Company expects to pay a $2.34 per share cash d... Chegg

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Connect Solved: Foxburo Company expects to pay a $2.34 per share cash d... Chegg.com CH11 Homework Saved Help Save & Exit Submit Check my work 5 Prepare journal entries to record the following four separate issuances of stock 1. A corporation issued 6,000 shares of $10 par value common stock for $72,000 cash. 2. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth 1.5 points $37,000. The stock has a $1 per share stated value 3. A corporation issued 3,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth eBook $37000. The stock has no stated value 4. A corporation issued 1,500 shares of $50 par value preferred stock for $112,000 cash. Hint Print References View transaction list Journal entry worksheet 4 Record the issue of 6,000 shares of $10 par value common stock for $72,000 cash Note: Enter debits before credits. Transaction General Journal Debit Credit Graw Hill

Explanation / Answer

Journal entry :

Date accounts & explanation Debit credit Cash a/c 72000      Common stock a/c 60000      Paid in capital in excess of par value-common stock 12000 (To record issue of common stock) Organisation fees 37000      Common stock a/c 3000      Paid in capital in excess of stated value-common stock 34000 (To record exchange of common stock) Organisation fees 37000       Common stock a/c 37000 (To record exchange of common stock) Cash a/c 112000     Preferred stock (1500*50) 75000     Paid in capital in excess of par value-preferred stock 37000 (To record issue of preferred stock)

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