Ask Question
27 October, 18:59

On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6, Stoltz Realty Inc. issued at par value 18,000 shares of preferred 1% stock, $50 par for cash. On September 15, Stoltz Realty Inc. issued for cash an additional 50,000 shares of no-par common stock (with a stated value of $3) for $15. Journalize the entries to record the May 23, July 6, and September 15 transactions. Refer to the Chart of Accounts for exact wording of account titles.

+2
Answers (1)
  1. 27 October, 22:05
    0
    23rd May

    Dr Cash 960,000

    Cr Common stock 240,000

    Cr Paid-in Capital - Common Stock 720,000

    (to record the issuance of 80,000 common shares for cash)

    6th July

    Dr Cash 900,000

    Cr Preferred stock 900,000

    (to record the issuance of 18,000 preferred shares for cash)

    15th September

    Dr Cash 750,000

    Cr Common stock 150,000

    Cr Paid-in capital - Common Stock 600,000

    (to record the issuance of 50,000 common shares for cash)

    Explanation:

    Working notes for each transactions:

    * 23rd May:

    Cash increases by: Amount of stocks issued * Price at issuance = 80,000 * 12 = $960,000

    Common stock account increases by: Amount of stock issued * Stated value = 80,000 * 3 = 240,000

    Paid-in capital account increased by: Amount of stock issued * (Price at issuance - Stated value) = 80,000 * 9 = $720,000

    * 6th July:

    Cash increases by: Amount of stocks issued * Price at issuance = 18,000 * 50 = $900,000

    Preferred stock account increases by: Amount of stock issued * Par value = 18,000 * 50 = $900,000;

    As shares are issued at par; no paid-in capital amount recorded.

    * 15th September:

    Cash increases by: Amount of stocks issued * Price at issuance = 50,000 * 15 = $750,000

    Common stock account increases by: Amount of stock issued * Stated value = 50,000 * 3 = 150,000

    Paid-in capital account increased by: Amount of stock issued * (Price at issuance - Stated value) = 50,000 * 12 = $600,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On May 23, Stoltz Realty Inc. issued for cash 80,000 shares of no-par common stock (with a stated value of $3) at $12. On July 6, Stoltz ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers