following are the issuances of stock transactions.\n1. a corporation issued 5,000 shares of $10 par - value…

following are the issuances of stock transactions.\n1. a corporation issued 5,000 shares of $10 par - value common stock for $60,000 cash.\n2. a corporation issued 2,500 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $53,000. the stock has a $2 per share stated value.\n3. a corporation issued 2,500 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $53,000. the stock has no stated value.\n4. a corporation issued 1,250 shares of $100 par value preferred stock for $178,000 cash.\nexercise 13 - 4 (algo) recording stock issuances lo p1\nprepare journal entries to record each of the following four separate issuances of stock.\nview transaction list\njournal entry worksheet\n< a b c d\nrecord the issue of 5,000 shares of $10 par value common stock for $60,000 cash.\nnote: enter debits before credits.\ntransaction general journal debit credit\n1

following are the issuances of stock transactions.\n1. a corporation issued 5,000 shares of $10 par - value common stock for $60,000 cash.\n2. a corporation issued 2,500 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $53,000. the stock has a $2 per share stated value.\n3. a corporation issued 2,500 shares of no - par common stock to its promoters in exchange for their efforts, estimated to be worth $53,000. the stock has no stated value.\n4. a corporation issued 1,250 shares of $100 par value preferred stock for $178,000 cash.\nexercise 13 - 4 (algo) recording stock issuances lo p1\nprepare journal entries to record each of the following four separate issuances of stock.\nview transaction list\njournal entry worksheet\n< a b c d\nrecord the issue of 5,000 shares of $10 par value common stock for $60,000 cash.\nnote: enter debits before credits.\ntransaction general journal debit credit\n1

Answer

Explanation:

Step1: Analyze transaction 1

Debit Cash for the amount received ($60,000). Credit Common Stock at par value (5,000 shares * $10 = $50,000) and Credit Additional - Paid - in Capital - Common Stock for the excess ($60,000 - $50,000 = $10,000).

Transaction General Journal Debit Credit
1 Cash $60,000
Common Stock $50,000
Additional - Paid - in Capital - Common Stock $10,000

Step2: Analyze transaction 2

Debit Organization Expenses for the value of promoters' services ($53,000). Credit Common Stock at stated value (2,500 shares * $2 = $5,000) and Credit Additional - Paid - in Capital - Common Stock for the excess ($53,000 - $5,000 = $48,000).

Transaction General Journal Debit Credit
2 Organization Expenses $53,000
Common Stock $5,000
Additional - Paid - in Capital - Common Stock $48,000

Step3: Analyze transaction 3

Debit Organization Expenses for the value of promoters' services ($53,000). Credit Common Stock for the entire amount since there is no stated value.

Transaction General Journal Debit Credit
3 Organization Expenses $53,000
Common Stock $53,000

Step4: Analyze transaction 4

Debit Cash for the amount received ($178,000). Credit Preferred Stock at par value (1,250 shares * $100 = $125,000) and Credit Additional - Paid - in Capital - Preferred Stock for the excess ($178,000 - $125,000 = $53,000).

Transaction General Journal Debit Credit
4 Cash $178,000
Preferred Stock $125,000
Additional - Paid - in Capital - Preferred Stock $53,000

Answer:

Transaction General Journal Debit Credit
1 Cash $60,000
Common Stock $50,000
Additional - Paid - in Capital - Common Stock $10,000
2 Organization Expenses $53,000
Common Stock $5,000
Additional - Paid - in Capital - Common Stock $48,000
3 Organization Expenses $53,000
Common Stock $53,000
4 Cash $178,000
Preferred Stock $125,000
Additional - Paid - in Capital - Preferred Stock $53,000