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Prepare journal entries for each transaction listed below. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Sales on account were $940 and related cost of goods sold was $520. b. Issued 2,000 shares of $1 par value stock for $70,000 cash.

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Answer:

a.) Dr Accounts receivable $940

    Cr Revenue $940

     Dr Cost of Sales $520

     Cr Inventory      $520

b.) Dr Cash $70000

    Cr Share Premium $68,000

     Cr Share Capital   $2000

Explanation:

a.) The sales were on account so the debit would be to a receivable account

b.)  The issues shares would have a  face value pf $1 X 2000 = $2000

A share premium account would have to be created, a share premium is the amount a company receives for its stock in excess of its face value

A face value is described as the nominal value as stated by the issue , it can basically be described as the original cost of the stock

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