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General Accounting Discussions: journals entries relating to shares & common stock

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    • CommentAuthorDar6563
    • CommentTimeJan 31st 2008
     
    How would a journal entry appear in the following scenario

    an issue of 2,000 shares of $25 par value common stock
    300 shares of 13%
    50% par value preferred stock for cash at par value

    I've been working on this for a few days and can't figure it out.
    • CommentAuthorCounter
    • CommentTimeFeb 4th 2008
     
    Common Stock: Debit Cash for the amount received for the shares of common - not provided in your info. Credit Common Stock for the total par value of $50,000 (2,000 shares X $25 par value). Credit Paid-in Capital in Excess of Par for the amount received that is greater than $50,000.

    Preferred Stock: Debit: Cash for $15,000 (300 shares X $15 the amount received for the shares of preferred stock). Credit: 13% Preferred Stock for $15,000 (300 shares X $50 par value).

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