Exercise 11-4 Osage Corporation issued 1,300 shares of stock. Prepare the entry

Question

Exercise 11-4

Osage Corporation issued 1,300 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. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

No.

Account Titles and Explanation

Debit

Credit

(a)

(b)

(c)

(d)

(e)

(a) The stock had a par value of $8 per share and was issued for a total of $46,200. (b) The stock had a stated value of $8 per share and was issued for a total of $46,200. (c) The stock had no par or stated value and was issued for a total of $46,200. (d) The stock had a par value of $8 per share and was issued to attorneys for services during incorporation valued at $46,200. (e) The stock had a par value of $8 per share and was issued for land worth $46,200.

Explanation / Answer

Journal entry :

No Accounts & explanation debit credit a) Cash 46200 Common stock (1300*8) 10400 Paid in capital in excess of par value 35800 b) Cash a/c 46200 Common stock a/c 10400   Paid in capital in excess of stated value 35800 c) Cash a/c 46200 Common stock a/c 46200 d) Attorney fees 46200 common stock a/c 10400   Paid in capital in excess of par value 35800 e) Land a/c 46200 Common stock a/c 10400    Paid in capital in excess of par value 35800

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