Journalizing issuance of stockSteller Systems completed the following stock issuance transactions:RequirementsJournalize the transactions. Explanations are not required.How much paid-in capital did these transactions generate for Steller Systems? May 19 Issued 1,700 shares of $3 par value common stock for cash of $10.50 pershare.Jun. 3 Issued 300 shares of $9, no-par preferred stock for $15,000 cash.Received equipment with a market value of $68,000 in exchange for5,000 shares of the $3 par value common stock.11

1. Prepare the journal entries:

May 19 Issued 1,700 shares of $3 par value common stock for cash of $10.50 per share. Jun. 3 Issued 300 shares of $9, no-par preferred stock for $15,000 cash. Received equipment with a market value of $68,000 in exchange for 5,000 shares of the $3 par value common stock. 11

May 19 Issued 1,700 shares of $3 par value common stock for cash of $10.50 per share. Jun. 3 Issued 300 shares of $9, no-par preferred stock for $15,000 cash. Received equipment with a market value of $68,000 in exchange for 5,000 shares of the $3 par value common stock. 11

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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Question

Journalizing issuance of stock

Steller Systems completed the following stock issuance transactions:

Requirements

Journalize the transactions. Explanations are not required.
How much paid-in capital did these transactions generate for Steller Systems?

May 19 Issued 1,700 shares of $3 par value common stock for cash of $10.50 per
share.
Jun. 3 Issued 300 shares of $9, no-par preferred stock for $15,000 cash.
Received equipment with a market value of $68,000 in exchange for
5,000 shares of the $3 par value common stock.
11

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