Stock Accounting Help Very Basic Problem Please Assist?
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The Great Gate asked:
On June 1, Herrera Inc. issues 2,800 shares of no-par common stock at a cash price of $9 per share. Journalize the issuance of the shares assuming the stock has a stated value of $1 per share. (For multiple debit/credit entries, list accounts in order of magnitude.)
Debit Cash For $25,200
Credit (BLANK) For $22,400
Credit (BLANK) For $2,800
It is weird because all the amounts are correct. Those dollar amounts are correct and debit cash for $25,200 is correct. But…..I put for the first (BLANK) Common Stock and it was incorrect and I tried to put for the first (BLANK) Treasury Stock and it was incorrect again. Second Blank I put paid in capital in excess of stated value and also incorrect. My options are dividends payable, retained earnings, common stock dividends distributable, common stock, cash, preferred stock, paid in capital in excess of par value, paid in capital in excess of stated value, and treasury stock. Good Luck!
Question posted courtesy of: Clyde
On June 1, Herrera Inc. issues 2,800 shares of no-par common stock at a cash price of $9 per share. Journalize the issuance of the shares assuming the stock has a stated value of $1 per share. (For multiple debit/credit entries, list accounts in order of magnitude.)
Debit Cash For $25,200
Credit (BLANK) For $22,400
Credit (BLANK) For $2,800
It is weird because all the amounts are correct. Those dollar amounts are correct and debit cash for $25,200 is correct. But…..I put for the first (BLANK) Common Stock and it was incorrect and I tried to put for the first (BLANK) Treasury Stock and it was incorrect again. Second Blank I put paid in capital in excess of stated value and also incorrect. My options are dividends payable, retained earnings, common stock dividends distributable, common stock, cash, preferred stock, paid in capital in excess of par value, paid in capital in excess of stated value, and treasury stock. Good Luck!
Question posted courtesy of: Clyde
