Osage Corporation issued 2,000 shares of stock. Instructions Prepare the entry for the issuance under the following assumptions. a. The stock had a par value of $6 per share and was issued for a total of $52,000. b. The stock had a stated value of $6 per share and was issued for a total of $52,000. c. The stock had no par or stated value and was issued for a total of $52,000. d. The stock had a par value of $6 per share and was issued to attorneys for services during incorporation valued at $32,000. e. The stock had a par value of $10 per share and was issued for land worth $92,000.
Osage Corporation issued 2,000 shares of stock. Instructions Prepare the entry for the issuance under the following assumptions. a. The stock had a par value of $6 per share and was issued for a total of $52,000. b. The stock had a stated value of $6 per share and was issued for a total of $52,000. c. The stock had no par or stated value and was issued for a total of $52,000. d. The stock had a par value of $6 per share and was issued to attorneys for services during incorporation valued at $32,000. e. The stock had a par value of $10 per share and was issued for land worth $92,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Osage Corporation Stock Issuance Overview**
**Context:** Osage Corporation has issued 2,000 shares of stock.
**Instructions:**
Prepare the journal entries for the stock issuance based on the different scenarios provided below:
a. The stock has a par value of $6 per share and is issued for a total amount of $52,000.
b. The stock has a stated value of $6 per share and is issued for a total amount of $52,000.
c. The stock has no par or stated value and is issued for a total amount of $52,000.
d. The stock has a par value of $6 per share and is issued to attorneys as payment for services during the incorporation process, with a value of $32,000.
e. The stock has a par value of $10 per share and is issued in exchange for land valued at $92,000.
**Notes for Consideration:**
- Par value refers to the face value or nominal value of the stock as stated in the corporate charter.
- Stated value is an assigned value per share that the board of directors may set to account for shares issued without a par value.
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