Homework Help is Here – Start Your Trial Now!
Business
Accounting
M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2] To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.   Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.   Journal Entry: 1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share. 2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.

M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2] To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.   Required: 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. 1-b. Prepare the journal entry for the stock issuance. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.   Journal Entry: 1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share. 2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter1: Introduction To Accounting And Business
Section: Chapter Questions
Problem 1.11EX: Effect of transactions on stockholders equity Indicate whether each of the following types of...
See similar textbooks
icon
Related questions
Question

M11-4 (Static) Analyzing and Recording the Issuance of Common Stock [LO 11-2]

To expand operations, Aragon Consulting issued 1,000 shares of previously unissued common stock with a par value of $1. The price for the stock was $50 per share.

 

Required:

  1. 1-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance.

  2. 1-b. Prepare the journal entry for the stock issuance.

  3. 2-a. Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2.

  4. 2-b. Prepare the journal entry for the stock issuance, if the par value were $2 per share.

 

Journal Entry:

1. Record the issuance of 1,000 shares with a $1 par value for a price of $50 per share.

2. Record the issuance of 1,000 shares with a $2 par value for a price of $50 per share.

Req 1A Req 1B Req 2A Assets Req 2B Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. (Enter any decreases to account balances with a minus sign.) Stockholders' Equity = = Liabilities < Req 1A + + + Req 1B >
Transcribed Image Text:Req 1A Req 1B Req 2A Assets Req 2B Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance. (Enter any decreases to account balances with a minus sign.) Stockholders' Equity = = Liabilities < Req 1A + + + Req 1B >
Req 1A Reg 1B Cash Req 2A Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. (Enter any decreases to account balan Stockholders' Equity Assets Req 2B || || Liabilities < Req 1B + + + Req 2B >
Transcribed Image Text:Req 1A Reg 1B Cash Req 2A Complete the table below, indicating the account, amount, and direction of the effect for the stock issuance with a par value of $2. (Enter any decreases to account balan Stockholders' Equity Assets Req 2B || || Liabilities < Req 1B + + + Req 2B >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS