Prepare the journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for: $5 cash per share. $6 cash per share.

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3 May, 18:34

Prepare the journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for: $5 cash per share. $6 cash per share.

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Omari · Answer 1

The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be

Debit Credit

Cash $330,000

Common stock $330,000

The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be

Debit Credit

Cash $396,000

Common stock $330,000

Paid in capital in excess of par value $66,000

Explanation:

The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be as follows:

Debit Credit

Cash $330,000

Common stock $330,000

Par values of the share of common stock=$66,000*5

Par values of the share of common stock=$330,000

The journal entry would be prepared by debiting cash and crediting common stock by $330,000

The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be as follows:

Debit Credit

Cash $396,000

Common stock $330,000

Paid in capital in excess of par value $66,000

cash=66,000*$6

cash=$396,000

Common stock=$66,000*5=$330,000

Paid in capital in excess of par value=$396,000-$330,000=$66,000