Ask Question
15 October, 08:33

To expand operations, Aragon Consulting issued 187,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for $32 per share. Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sale of the above stock. Sale of above stock if the par value was $5 per share.

+4
Answers (1)
  1. 15 October, 10:00
    0
    The answer is given below;

    Explanation:

    1. Stock issued with par value of $1

    Cash 187,000*32 Dr.$ 5,984,000

    Common Stocks 187,000*1 Cr.$187,000

    Paid in Capital-Common stocks 187,000 * (32-1) Cr.$5,797,000

    2. Stock issued with par value of $5

    Cash 187,000*32 Dr.$5,984,000

    Common Stocks 187,000*5 Cr.$935,000

    Paid in Capital-Common Stocks 187,000 * (32-5) Cr.$5,049,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “To expand operations, Aragon Consulting issued 187,000 shares of previously unissued stock with a par value of $1. Investors purchased the ...” 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