Henlay, Inc., issued 10,000 shares of $40 par value preferred stock at $96 per share and 8,000 shares of no-par value common stock at $30 per share. The common stock has no stated value. All issuances were for cash. a. Prepare the journal entries to record the share issuances. b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $20 per share. c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $4 per share. General Journal Ref. Description Debit Credit a. Preferred stock Issued shares of preferred stock. Issued shares of no-par value common stock. b. Common stock Issued shares of no-par value common stock, stated value. c. Common stock Issued shares of common stock.
Henlay, Inc., issued 10,000 shares of $40 par value preferred stock at $96 per share and 8,000 shares of no-par value common stock at $30 per share. The common stock has no stated value. All issuances were for cash. a. Prepare the journal entries to record the share issuances. b. Prepare the journal entry for the issuance of the common stock assuming that it had a stated value of $20 per share. c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $4 per share. General Journal Ref. Description Debit Credit a. Preferred stock Issued shares of preferred stock. Issued shares of no-par value common stock. b. Common stock Issued shares of no-par value common stock, stated value. c. Common stock Issued shares of common stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Share Issuances for Cash
Henlay, Inc., issued 10,000 shares of $40 par value
a. Prepare the journal entries to record the share issuances.
b. Prepare the
c. Prepare the journal entry for the issuance of the common stock assuming that it had a par value of $4 per share.
| General Journal | |||
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| Ref. | Description | Debit | Credit |
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| Preferred stock |
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Issued shares of preferred stock. |
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Issued shares of no-par value common stock. |
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| Common stock |
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Issued shares of no-par value common stock, stated value. |
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| Common stock |
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Issued shares of common stock. |
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