M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2] To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share. Journal Entry: 1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share. 2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.
M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2] To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share. Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share. Journal Entry: 1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share. 2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2]
To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.
Required:
-
1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance.
-
1-b. Prepare the
journal entry for the stock issuance. -
2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2.
-
2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.
Journal Entry:
1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share.
2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.
Transcribed Image Text:Req 1A
Req 1B
Req 2A
Assets
Req 2B
Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. (Enter any decreases to account balances with a minus sign.)
Stockholders' Equity
=
=
Liabilities
< Req 1A
+
+
+
Req 1B
>
Transcribed Image Text:Req 1A
Reg 1B
Cash
Req 2A
Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. (Enter any decreases to account balan
Stockholders' Equity
Assets
Req 2B
||
||
Liabilities
< Req 1B
+
+
+
Req 2B >
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