Chapter 13, Problem 3E

Recording stock issuances

Prepare journal entries to record each of the following four separate issuances of stock.

1. 1. A corporation issued 4,000 shares of $5 par value common stock for $35,000 cash.
2. 2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has a $1 per share stated value.
3. 3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $40,000. The stock has no stated value.
4. 4. A corporation issued 1,000 shares of $50 par value preferred stock for $60,000 cash.