Prepare journal entries to record each of the following four separate issuances of stock. 1. A corporation issued 8,000 shares of $20 par value common stock for $192,000 cash.
2. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has a $1 per share stated value.
3. A corporation issued 4,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $58,500. The stock has no stated value.
4. A corporation issued 2,000 shares of $50 par value preferred stock for $158,500 cash.

Please see explanation column for answers

Explanation

1.To record the issue of 8,000 shares of $20 par value.

Account titles and explanation                     Debit                  Credit

Cash Account                                            $192,000

 Common Stock( 8,000 shares x $20)                                   $160,000                                                            $160,000

 Paid-in In Excess of Par                                                           $32,000

2. To record the issue of 4,000 shares of $1 stated value.

Account titles and explanation                     Debit                  Credit

Retained Earnings                                       $4,000

Common Stock                                                                          $4,000

3. To record the issue of 4,000 shares of no stated value.

Account titles and explanation                     Debit                    Credit

Retained Earnings                                    $58,500

Common Stock                                                                           $58,500

4.To record the issue of 2,000 shares of $50   par value.

Account titles and explanation                     Debit                  Credit

Cash                                                              $158,500

Preferred Stock( 2,000 shares x $50)                                      $100,000

Paid-in In Excess of Par                                                              $58,500

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"

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