Respuesta :
Answer:
1.Dr Cash $56,000
Cr Common stock $4,000
Cr Paid-in capital in excess of par $52,000
2.
Dr Cash $56,000
Cr Common stock no par value $56,000
Explanation:
The cash proceeds from the issue of common stock is $14*4000=$56,000
Consequently, the cash account is debited with $56,000 and corresponding credit entries would to common stock account with $4,000($1*4000) and paid-in capital in excess of par $52,000($14-$1)*4000))
However,when there is no par amount the $56,000 cash proceeds is debited to cash account and credited to common stock no par value account
- The journal entries are as follows;
1.
Cash $56,000 (4,000 × $14)
To Common stock $4,000 (4,000 × $1)
To Paid-in capital in excess of par $52,000
(Being the issuance of the stock is recorded)
2.
Cash $56,000
To Common stock no par value $56,000
(Being the issuance of the stock - no par value is recorded)
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