Answer:
Zentric Corporation
Journal Entries:
January 22:
Debit Cash with $1,140,000
Credit Common Stock with $1,140,000
To record issue of 76,000 shares of no-par value common stock at $15 each.
February 14:
Debit Cash Account with $400,000
Credit Preferred 6% Stock with $400,000
To record the issue of 8,000 shares at $50 par.
August 30:
Debit Cash Account with $780,000
Credit Preferred 6% Stock with $600,000
Credit APIC - Preferred with $180,000
To record issue of 12,000 shares, $50 par at $65.
No Chart of Accounts was provided for exact wording of account titles.
Explanation:
1. No-par common stock: When shares are issued at no-par, it means that there is no set par value. Par value is the nominal value of a share. Issuing at no-par implies that the amount realized from the sale would be credited to the Common Stock without any to the Additional Paid-in Capital (APIC).
2. Issue of preferred 6% stock at par value: This means that the stock was issued without additional paid-in capital. The stock was issued at the nominal value without premium.
3. Issue of preferred 6% stock, $50 par at $65: This stock was issued at a premium. More was charged above the par value. There is additional paid-in capital of $15 per share. This additional is credited to Additional Paid-in Capital - Preferred.