Business, 27.12.2019 01:31 Juliianatafur22

Flint corporation issued 700 shares of no-par common stock for $7,800. prepare flint’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share

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Answer from: Hazard970

Flint corporation journal $

Date

1. Bank account Dr 7800

Common stock Or. 7800

Narration. Issuance of 700 ordinary stock for $7800 .

2. Bank account Dr 7800

Common stock Cr. 1400

Share premium. 6400

Narration. Issuance of 700 ordinary at $7800 at a premium.

Explanation:

Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.

Answer from: moningersavannah

A. Flint’s journal entry if the stock has no stated value

Dr Bank7,800

Cr Common Stock7,800

To record the issuance of 700 shares of stock.

B. Flint’s journal entry if the stock has a stated value of $2 per share

Dr Bank7,800

Cr Common Stock..(700 shares @ $2 par per share1,400

Cr Paid-In Capital in Excess of Par Value6,400

To record the issuance of 700 shares of stock @ $2 par per share.

Explanation:

In scenario a, where there is no stated par value, there is no way to distinguish between share capital and share premium, hence everything is recorded under common stock but in scenario b, with par value stated, the excess amounts have to be recorded separately as amount received in excess of par value.

Answer from: Quest

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

Answer from: Quest

i think this is true i hope this

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Flint corporation issued 700 shares of no-par common stock for $7,800. prepare flint’s journal entry...