To expand operations, Aragon Consulting issued 1,550 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.
To expand operations, Aragon Consulting issued 1,550 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
To expand operations, Aragon Consulting issued 1,550 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.
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