Respuesta :
Answer:
The answers are given below;
Explanation:
The journal entries under each of following scenario are prepared as follows;
1. Cash Dr.$96,000
Common Stocks(6000*14) Cr.$84,000
Paid in capital in excess of par (96,000-84,000) Cr.$12,000
2. Cash Dr. $96,000
Common Stocks Cr.$96,000
3. Cash Dr.$96,000
Common Stocks (7*6000) Cr.$42,000
Paid in capital in excess of par (96,000-42,000) Cr.$54,000
When there is no stated or par value,the entire amount of funds raised are credited in common stocks.
Answer:
Journal entries for issue for cash proceeds of $96,000
Dr Cash $96,000
Cr Common stock par value($14*6000) $84,000
Cr Paid-in capital in excess of par value($96,000-$84,000) $12,000
The journal entries with neither par or stated value
Dr Cash $96,000
Cr Common stock with neither par or stated value $96,000
Journal entries when stated value is $7
Dr Cash $96,000
Cr Common stock at stated value of $7($7*6000) $42,000
Cr Paid-in capital in excess of stated value($96,000-$42,000) $52,000
Explanation:
Cash is debited in all cases as the more cash was received,an increase in asset is normally debited to the relevant asset account.
Common stock and paid-in capital in excess par were credited because they shows the increase in amount owed by the business to their owners.
