the following information applies to the questions displayed below. following are the issuances of stock…

the following information applies to the questions displayed below. following are the issuances of stock transactions. 1. a corporation issued 6,000 shares of $20 par value common stock for $144,000 cash. 2. a corporation issued 3,000 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. the stock has a $2 per share stated value. 3. a corporation issued 3,000 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. the stock has no stated value. 4. a corporation issued 1,500 shares of $75 par value preferred stock for $163,500 cash. prepare journal entries to record each of the following four separate issuances of stock. view transaction list journal entry worksheet record the issue of 6,000 shares of $20 par value common stock for $144,000 cash. note: enter debits before credits.

the following information applies to the questions displayed below. following are the issuances of stock transactions. 1. a corporation issued 6,000 shares of $20 par value common stock for $144,000 cash. 2. a corporation issued 3,000 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. the stock has a $2 per share stated value. 3. a corporation issued 3,000 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $51,000. the stock has no stated value. 4. a corporation issued 1,500 shares of $75 par value preferred stock for $163,500 cash. prepare journal entries to record each of the following four separate issuances of stock. view transaction list journal entry worksheet record the issue of 6,000 shares of $20 par value common stock for $144,000 cash. note: enter debits before credits.

Answer

Explanation:

Step1: Analyze transaction 1

Debit Cash for the amount received ($144,000). Credit Common Stock at par value (6,000 × $20 = $120,000). Credit Paid - in Capital in Excess of Par - Common Stock for the excess ($144,000 - $120,000 = $24,000).

Step2: Analyze transaction 2

Debit Organization Expense (for the value of promoters' efforts, $51,000). Credit Common Stock at stated value (3,000 × $2 = $6,000). Credit Paid - in Capital in Excess of Stated - Common Stock ($51,000 - $6,000 = $45,000).

Step3: Analyze transaction 3

Debit Organization Expense ($51,000). Credit Common Stock (no par, no stated value, so credit the full amount, $51,000).

Step4: Analyze transaction 4

Debit Cash ($163,500). Credit Preferred Stock at par value (1,500 × $75 = $112,500). Credit Paid - in Capital in Excess of Par - Preferred Stock ($163,500 - $112,500 = $51,000).

Answer:

Transaction General Journal Debit Credit
1 Cash $144,000
Common Stock $120,000
Paid - in Capital in Excess of Par - Common Stock $24,000
2 Organization Expense $51,000
Common Stock $6,000
Paid - in Capital in Excess of Stated - Common Stock $45,000
3 Organization Expense $51,000
Common Stock $51,000
4 Cash $163,500
Preferred Stock $112,500
Paid - in Capital in Excess of Par - Preferred Stock $51,000