BUSINESS AND FINANCE

Exercise 13-4

 

Osage Corporation issued 2,000 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

a) The stock had a par value of $5 per share and was issued for a total of $52,000.

b) The stock had a stated value of $5 per share and was issued for a total of $52,000.

c) The stock had no par or stated value and was issued for a total of $52,000.

d) The stock had a par value of $5 per share and was issued to attorneys for services during incorporation valued at $52,000.

e) The stock had a par value of $5 per share and was issued for land worth $52,000.

 

Common Stock = 2,000 x 5 = 10,000

a)

Account titles and explanation Debt Credit
Cash 52,000  
Common Stock   10,000
Paid-in Capital in Excess of Par-Common Stock  = 52,00 – 10,000 =   42,000

 

b)

Account titles and explanation Debt Credit
Cash 52,000  
Common Stock   10,000
Paid-in Capital in Excess of Stated Value-Common Stock  = 52,00 – 10,000 =   42,000

 

c)

Account titles and explanation Debt Credit
Cash 52,000  
Common Stock   52,000

 

d)

Account titles and explanation Debt Credit
Organization Expense 52,000  
Common Stock   10,000
Paid-in Capital in Excess of Stated Value-Common Stock  = 52,00 – 10,000 =   42,000

 

e)

Account titles and explanation Debt Credit
Land 52,000  
Common Stock   10,000
Paid-in Capital in Excess of Stated Value-Common Stock  = 52,00 – 10,000 =   42,000

 

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