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23 May, 07:30

Prepare the journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for: $5 cash per share. $6 cash per share.

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  1. 23 May, 07:50
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    The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be

    Debit Credit

    Cash $330,000

    Common stock $330,000

    The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be

    Debit Credit

    Cash $396,000

    Common stock $330,000

    Paid in capital in excess of par value $66,000

    Explanation:

    The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $5 cash per share would be as follows:

    Debit Credit

    Cash $330,000

    Common stock $330,000

    Par values of the share of common stock=$66,000*5

    Par values of the share of common stock=$330,000

    The journal entry would be prepared by debiting cash and crediting common stock by $330,000

    The journal entry to record Zende Company's issuance of 66,000 shares of $5 par value common stock assuming the shares sell for $6 cash per share would be as follows:

    Debit Credit

    Cash $396,000

    Common stock $330,000

    Paid in capital in excess of par value $66,000

    cash=66,000*$6

    cash=$396,000

    Common stock=$66,000*5=$330,000

    Paid in capital in excess of par value=$396,000-$330,000=$66,000
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