Question
May 19: Issued 1,600 shares of $2 par value common stock for cash of $13.00 per share.
Journalize
Journalize
Answers
Answer
Jun. 3: Issued 260 shares of $9, no-par preferred stock for $13,000 cash.
Journalize
Journalize
Answer
June 11: Received equipment with a market value of $ 69,000 in exchange for 4,000 shares of the $2 par value common stock.
Journalize
Journalize
Answer
Total paid-in capital generated from these transactions amounts to [blank].
Answer
That is incorrect
Answered by
GPT-4o mini
To journalize the issuance of 1,600 shares of $2 par value common stock for cash at $13.00 per share, you need to calculate the total cash received and the additional paid-in capital.
### Calculation:
- Total cash received = 1,600 shares × $13.00/share = $20,800
- Par value of the stock = 1,600 shares × $2.00/share = $3,200
- Additional paid-in capital = Total cash received - Par value = $20,800 - $3,200 = $17,600
### Journal Entry:
**Date: May 19**
| Account Title | Debit | Credit |
|-------------------------------|---------------|---------------|
| Cash | $20,800 | |
| Common Stock | | $3,200 |
| Additional Paid-In Capital | | $17,600 |
### Explanation:
- **Cash** is debited for the total amount collected from the issuance of stock.
- **Common Stock** is credited for the par value of the shares issued.
- **Additional Paid-In Capital** is credited for the amount received in excess of the par value.
This journal entry reflects the issuance of the common stock and its effects on the company’s equity.
### Calculation:
- Total cash received = 1,600 shares × $13.00/share = $20,800
- Par value of the stock = 1,600 shares × $2.00/share = $3,200
- Additional paid-in capital = Total cash received - Par value = $20,800 - $3,200 = $17,600
### Journal Entry:
**Date: May 19**
| Account Title | Debit | Credit |
|-------------------------------|---------------|---------------|
| Cash | $20,800 | |
| Common Stock | | $3,200 |
| Additional Paid-In Capital | | $17,600 |
### Explanation:
- **Cash** is debited for the total amount collected from the issuance of stock.
- **Common Stock** is credited for the par value of the shares issued.
- **Additional Paid-In Capital** is credited for the amount received in excess of the par value.
This journal entry reflects the issuance of the common stock and its effects on the company’s equity.
Answered by
GPT-4o mini
To journalize the issuance of 260 shares of $9 no-par preferred stock for $13,000 cash, you will only need to make an entry for cash and preferred stock, as there is no par value.
### Journal Entry:
**Date: June 3**
| Account Title | Debit | Credit |
|-------------------------|------------|-------------|
| Cash | $13,000 | |
| Preferred Stock | | $13,000 |
### Explanation:
- **Cash** is debited for the total amount received from the issuance of the preferred stock ($13,000).
- **Preferred Stock** is credited for the same amount because it represents the value of the shares issued, and since it's no-par stock, the entire amount goes into the preferred stock account.
This journal entry records the transaction properly, reflecting the increase in cash and the increase in shareholders' equity through the preferred stock issuance.
### Journal Entry:
**Date: June 3**
| Account Title | Debit | Credit |
|-------------------------|------------|-------------|
| Cash | $13,000 | |
| Preferred Stock | | $13,000 |
### Explanation:
- **Cash** is debited for the total amount received from the issuance of the preferred stock ($13,000).
- **Preferred Stock** is credited for the same amount because it represents the value of the shares issued, and since it's no-par stock, the entire amount goes into the preferred stock account.
This journal entry records the transaction properly, reflecting the increase in cash and the increase in shareholders' equity through the preferred stock issuance.
Answered by
GPT-4o mini
To journalize the receipt of equipment with a market value of $69,000 in exchange for 4,000 shares of $2 par value common stock, you will need to record the equipment received at its fair market value and recognize the issuance of common stock.
### Calculation:
- Total par value of the stock issued = 4,000 shares × $2.00/share = $8,000
- Since the equipment is received at market value, it will be recognized at $69,000.
### Journal Entry:
**Date: June 11**
| Account Title | Debit | Credit |
|-------------------------------|---------------|---------------|
| Equipment | $69,000 | |
| Common Stock | | $8,000 |
| Additional Paid-In Capital | | $61,000 |
### Explanation:
- **Equipment** is debited for its market value of $69,000, reflecting the asset acquired.
- **Common Stock** is credited for the par value of the shares issued ($8,000).
- **Additional Paid-In Capital** is credited for the excess of the fair market value over the par value of the common stock issued ($69,000 - $8,000 = $61,000).
This journal entry accurately reflects the exchange of stock for equipment, showing the increase in the equipment asset and the common stock and additional paid-in capital.
### Calculation:
- Total par value of the stock issued = 4,000 shares × $2.00/share = $8,000
- Since the equipment is received at market value, it will be recognized at $69,000.
### Journal Entry:
**Date: June 11**
| Account Title | Debit | Credit |
|-------------------------------|---------------|---------------|
| Equipment | $69,000 | |
| Common Stock | | $8,000 |
| Additional Paid-In Capital | | $61,000 |
### Explanation:
- **Equipment** is debited for its market value of $69,000, reflecting the asset acquired.
- **Common Stock** is credited for the par value of the shares issued ($8,000).
- **Additional Paid-In Capital** is credited for the excess of the fair market value over the par value of the common stock issued ($69,000 - $8,000 = $61,000).
This journal entry accurately reflects the exchange of stock for equipment, showing the increase in the equipment asset and the common stock and additional paid-in capital.
Answered by
GPT-4o mini
To determine the total paid-in capital generated from the transactions you've provided, we'll need to calculate the paid-in capital from each transaction and then sum them up.
### Summary of Transactions:
1. **May 19: Issued 1,600 shares of $2 par value common stock for cash of $13.00 per share.**
- Cash received: $20,800
- Par value: $3,200
- Additional Paid-In Capital: $17,600
2. **June 3: Issued 260 shares of $9 no-par preferred stock for $13,000 cash.**
- Cash received: $13,000
- Since there is no par value, the full $13,000 goes to preferred stock.
- Additional Paid-In Capital: $0 (entire amount is recorded in Preferred Stock)
3. **June 11: Received equipment with a market value of $69,000 in exchange for 4,000 shares of $2 par value common stock.**
- Equipment received: $69,000
- Common Stock (par value): $8,000
- Additional Paid-In Capital: $61,000
### Total Paid-In Capital Calculation:
- From **May 19**: Additional Paid-In Capital = $17,600
- From **June 3**: Additional Paid-In Capital = $0
- From **June 11**: Additional Paid-In Capital = $61,000
**Total Paid-In Capital** = $17,600 + $0 + $61,000 = **$78,600**
### Final Answer:
**Total paid-in capital generated from these transactions amounts to $78,600.**
### Summary of Transactions:
1. **May 19: Issued 1,600 shares of $2 par value common stock for cash of $13.00 per share.**
- Cash received: $20,800
- Par value: $3,200
- Additional Paid-In Capital: $17,600
2. **June 3: Issued 260 shares of $9 no-par preferred stock for $13,000 cash.**
- Cash received: $13,000
- Since there is no par value, the full $13,000 goes to preferred stock.
- Additional Paid-In Capital: $0 (entire amount is recorded in Preferred Stock)
3. **June 11: Received equipment with a market value of $69,000 in exchange for 4,000 shares of $2 par value common stock.**
- Equipment received: $69,000
- Common Stock (par value): $8,000
- Additional Paid-In Capital: $61,000
### Total Paid-In Capital Calculation:
- From **May 19**: Additional Paid-In Capital = $17,600
- From **June 3**: Additional Paid-In Capital = $0
- From **June 11**: Additional Paid-In Capital = $61,000
**Total Paid-In Capital** = $17,600 + $0 + $61,000 = **$78,600**
### Final Answer:
**Total paid-in capital generated from these transactions amounts to $78,600.**
Answered by
GPT-4o mini
I apologize for any oversight in my previous calculation. Let’s carefully summarize the transactions again to determine the total paid-in capital generated.
### Transaction Summary
1. **May 19: Issued 1,600 shares of $2 par value common stock for cash of $13.00 per share.**
- **Cash received** = 1,600 shares × $13.00/share = **$20,800**
- **Par value of the stock** = 1,600 shares × $2.00/share = **$3,200**
- **Additional Paid-In Capital** (APIC) = Cash received - Par value = $20,800 - $3,200 = **$17,600**
2. **June 3: Issued 260 shares of no-par preferred stock for $13,000 cash.**
- **Cash received** = **$13,000** (entirely recorded as Preferred Stock, so APIC for preferred stock is $0).
3. **June 11: Received equipment valued at $69,000 in exchange for 4,000 shares of $2 par value common stock.**
- **Market value of equipment** = **$69,000**
- **Par value of the stock** = 4,000 shares × $2.00/share = **$8,000**
- **Additional Paid-In Capital** (APIC) = Market value of equipment - Par value = $69,000 - $8,000 = **$61,000**
### Total Paid-In Capital Calculation
Now, let's add up the Additional Paid-In Capital from each transaction:
1. From **May 19**: **$17,600**
2. From **June 3**: **$0**
3. From **June 11**: **$61,000**
**Total Paid-In Capital** = $17,600 + $0 + $61,000 = **$78,600**
I see now that I rechecked everything and the previous answer for Total Paid-In Capital seems consistent; however, if you identified an error, please clarify further what might be incorrect so I can assist you accurately. If you believe a transaction was missed or miscalculated, I'll be glad to review it again. Thank you!
### Transaction Summary
1. **May 19: Issued 1,600 shares of $2 par value common stock for cash of $13.00 per share.**
- **Cash received** = 1,600 shares × $13.00/share = **$20,800**
- **Par value of the stock** = 1,600 shares × $2.00/share = **$3,200**
- **Additional Paid-In Capital** (APIC) = Cash received - Par value = $20,800 - $3,200 = **$17,600**
2. **June 3: Issued 260 shares of no-par preferred stock for $13,000 cash.**
- **Cash received** = **$13,000** (entirely recorded as Preferred Stock, so APIC for preferred stock is $0).
3. **June 11: Received equipment valued at $69,000 in exchange for 4,000 shares of $2 par value common stock.**
- **Market value of equipment** = **$69,000**
- **Par value of the stock** = 4,000 shares × $2.00/share = **$8,000**
- **Additional Paid-In Capital** (APIC) = Market value of equipment - Par value = $69,000 - $8,000 = **$61,000**
### Total Paid-In Capital Calculation
Now, let's add up the Additional Paid-In Capital from each transaction:
1. From **May 19**: **$17,600**
2. From **June 3**: **$0**
3. From **June 11**: **$61,000**
**Total Paid-In Capital** = $17,600 + $0 + $61,000 = **$78,600**
I see now that I rechecked everything and the previous answer for Total Paid-In Capital seems consistent; however, if you identified an error, please clarify further what might be incorrect so I can assist you accurately. If you believe a transaction was missed or miscalculated, I'll be glad to review it again. Thank you!
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