Chapter 11, Problem 3E

To determine

Journal Entries:

It is a book of original entry. It records and summarizes financial transaction of an entity in chronological manner, generally according to dual aspect of accounting.

Accounting rules regarding journal entries:

• Balance increase when: Assets, losses and expenses get debited and liabilities, gains, and revenue get credited.
• Balance decrease when: Assets, losses and expenses get credited and liabilities, gains, and revenue get debited.

Stated Value:

It is the value of a share assign by the management of the company when its charter is silent about the face value of the share. It is assigned for accounting purpose.

To prepare: Journal entry.