### Stock Issuance Journal Entries#### OverviewIn this exercise, you will learn how to prepare journal entries for four separate stock issuances. Each scenario involves different types of stocks and conditions.#### Scenarios1. **Issuance of Par Value Common Stock for Cash** - A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash. **Journal Entry:** - Debit: Cash $35,000 - Credit: Common Stock (4,000 shares x $5) $20,000 - Credit: Additional Paid-In Capital $15,0002. **Issuance of No-Par Common Stock with Stated Value for Non-Cash Consideration** - A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, valued at $40,000. The stock has a $1 per share stated value. **Journal Entry:** - Debit: Organization Expense $40,000 - Credit: Common Stock (2,000 shares x $1) $2,000 - Credit: Additional Paid-In Capital $38,0003. **Issuance of No-Par Common Stock Without Stated Value for Non-Cash Consideration** - A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, valued at $40,000. The stock has no stated value. **Journal Entry:** - Debit: Organization Expense $40,000 - Credit: Common Stock $40,0004. **Issuance of Preferred Stock for Cash** - A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash. **Journal Entry:** - Debit: Cash $60,000 - Credit: Preferred Stock (1,000 shares x $50) $50,000 - Credit: Additional Paid-In Capital $10,000This structured exercise helps illustrate how to properly account for different types of stock issuances using journal entries.

Journal means the book of original entry where the first time entry is passed. Share with no par…

Answered: Prepare journal entries to record each…

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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On April 2 a corporation purchased for cash 6,000 shares of its own $13 par common stock at $27 a share. It sold 4,000 of the treasury shares at $30 a share on June 10. The remaining 2,000 shares were sold on November 10 for $23 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank.
Nebraska Inc. issues 2,300 shares of common stock for $73,600. The stock has a stated value of $12 per share. The journal entry to record the stock issuance would include a credit to Common Stock for a.$73,600 b.$27,600 c.$2,300 d.$46,000
On April 2 a corporation purchased for cash 6,000 shares of its own $12 par common stock at $27 a share. It sold 4,000 of the treasury shares at $30 a share on June 10. The remaining 2,000 shares were sold on November 10 for $23 a share. a. Journalize the entries to record the purchase (treasury stock is recorded at cost). If an amount box does not require an entry, leave it blank Apr. 2 Treasury Stock Treasury Stock Cash Cash Question Content Area b. Journalize the entries to record the sale of the stock. If an amount box does not require an entry, leave it blank. Jun. 10 - Select - - Select - - Select - - Select - - Select - - Select - Nov. 10 - Select - - Select - - Select - - Select - - Select - - Select -
Prepare journal entries to record each of the following four separate issuances of stock..
Subject :- Accounting
The charter of a corporation provides for the issuance of 95,662 shares of common stock. Assume that 37,907 shares were originally issued and 3,885 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2 per share dividend is declared? a.$68,044 b.$3,885 c.$95,662 d.$37,907
Nebraska Inc. issues 3,000 shares of common stock for $45,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for:
A corporation issues 4,550 shares of common stock $145,600. The stock has a stated value of $19 per share. What amount of credit to Common Stock would the journal entry to record the stock issuance include? Select the correct answer. $145,600 $59,150 $86,450 $4,550
EhrlichCo. had the following transactions during the current period. Mar. 2 Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $40,000 for services performed in helping the company to incorporate.June 12 Issued 60,000 shares of $5 par value common stock for cash of $365,000.July 11 Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share. Aug. 15 Issued 20,000 shares of common stock for a building with an asking price of $150,000 and a fair value of $140,000Nov. 28 Purchased 2,000 shares of treasury stock for $80,000. Dec. 15 Sold 500 shares of the treasury stock for $45 per shareInstructions: 1. Journalize the transactions. 2. Prepare the stockholders' equity section of the balance sheet. Use the following example as a guide. For Retained Earnings for this example, you can use $1,050,000. Stockholders’ equity Paid-in capital: Capital stock: 9% preferred stock, $100 par value,…
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Following are the issuances of stock transactions. A corporation issued 3,000 shares of $10 par value common stock for $36,000 cash. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,500. The stock has a $2 per share stated value. A corporation issued 1,500 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $33,500. The stock has no stated value. A corporation issued 750 shares of $25 par value preferred stock for $52,250 cash. Prepare journal entries to record each of the following four separate issuances of stock.

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