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Entries for Issuing Stock On January 22, Shamrock Corpora shares of preferred 6% stock, $75 Journalize the entries to record th Jan. 22 Feb. 14 Aug. 30

Entries for Issuing Stock On January 22, Shamrock Corpora shares of preferred 6% stock, $75 Journalize the entries to record th Jan. 22 Feb. 14 Aug. 30

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Entries for Issuing Stock On January 22, Shamrock Corporation issued for cash 30,000 shares of no-par common stock at $30. On February 14, Shamrock issued at par value 9,000 shares of preferred 6% stock, $75 par for cash. On August 30, Shamrock Corporation issued for cash 30,000 shares of preferred 6% stock, $75 par at $79. Journalize the entries to record the January 22, February 14, and August 30 transactions. If an amount box does not require an entry, leave it blank. Jan. 22 Feb. 14 Aug. 30
Transcribed Image Text:Entries for Issuing Stock On January 22, Shamrock Corporation issued for cash 30,000 shares of no-par common stock at $30. On February 14, Shamrock issued at par value 9,000 shares of preferred 6% stock, $75 par for cash. On August 30, Shamrock Corporation issued for cash 30,000 shares of preferred 6% stock, $75 par at $79. Journalize the entries to record the January 22, February 14, and August 30 transactions. If an amount box does not require an entry, leave it blank. Jan. 22 Feb. 14 Aug. 30
Expert Solution
Step 1

General understanding - 

When shares are issued to the public we get to cash in return so the cash account will be debited and capital or stock will get credited.

When shares are issued at a price that is more than par value then the excess amount received is to be credited Additional paid-in capital in excess of par.

 

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