contestada

. A company is authorized to issue 750,000 shares of $5 par value common stock. Prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
Jan. 10 Sold 102,000 shares of common stock for $8 cash per share.
jan. 15 Exchanged 10,000 shares of common stock for equipment with a market value of $80,000.
Feb. 1 Exchanged 500 shares of common stock for $3,000 of legal services Incurred during the company's organization.

Respuesta :

jepessoa

Answer:

The answers are:

January 10

Cash                                          $816,000

Common stock                                                  $510,000

Contributed capital in excess

of par value, common stock                             $306,000

January 15

Equipment                                   $80,000

Common stock                                                    $50,000

Contributed capital in excess

of par value, common stock                               $30,000

February 1

Organizational expenses              $3,000

Common stock                                                    $25,000

Contributed capital in excess

of par value, common stock                                    $500

Explanation:

Contributed capital in excess of par value is the amount of money (or other assets) over the par value of stock (in this case $5 per common stock) that the company received form shareholders in exchange for stock.

Tundexi

The journal entries to record the transactions that occurred during the company's first year of operations is as follows

                                Journal Entry

Date            Account titles                              Debit        Credit

January 10   Cash                                         $816,000

                            Common stock                                    $510,000

                             Contributed capital in excess            $306,000

                             of par value, common stock                            

January 15     Equipment                               $80,000

                               Common stock                                   $50,000

                               Contributed capital in excess            $30,000

                               of par value, common stock                              

February 1      Organizational expenses       $3,000

                               Common stock                                     $25,000

                               Contributed capital in excess              $500

                                of par value, common stock                                    

Read more about journal entries

brainly.com/question/23156395

Otras preguntas

Q&A Education