To expand operations, Aragon Consulting issued 187,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for $32 per share. Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sale of the above stock. Sale of above stock if the par value was $5 per share.

Question

Kylan Padilla

Business

25 January, 20:48

To expand operations, Aragon Consulting issued 187,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for $32 per share. Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Sale of the above stock. Sale of above stock if the par value was $5 per share.

+2

Answers (1)

Know the Answer?

Kymani Valentine · Answer 1

The answer is given below;

Explanation:

1. Stock issued with par value of $1

Cash 187,000*32 Dr.$ 5,984,000

Common Stocks 187,000*1 Cr.$187,000

Paid in Capital-Common stocks 187,000 * (32-1) Cr.$5,797,000

2. Stock issued with par value of $5

Cash 187,000*32 Dr.$5,984,000

Common Stocks 187,000*5 Cr.$935,000

Paid in Capital-Common Stocks 187,000 * (32-5) Cr.$5,049,000