Prepare journal entries to record issuances of stock


Response to the following problem:

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

1. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,000. The stock has no stated value.

2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $30,000. The stock has a $1 per share stated value.

3. A corporation issued 4,000 shares of $10 par value common stock for $70,000 cash.

4. A corporation issued 1,000 shares of $100 par value preferred stock for $120,000 cash.

 

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Accounting Basics: Prepare journal entries to record issuances of stock
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