Electronics completed stock issuance transactions. Prepare the journal entries to record these transactions. Explanations are not required. ​(Record debits​ first, then​ credits.)

Here are the journal entries to record the stock issuance transaction on June 7:

June 7

Debit: Cash                      $45,500
    Credit: Common Stock                $14,000
    Credit: Additional Paid-in Capital     $31,500

Explanation:

• Cash is debited for the total cash received (3,500 shares x $13 per share).
• Common Stock is credited for the par value of the shares issued (3,500 shares x $4 par value).
• Additional Paid-in Capital represents the excess over par value (Total Cash received - Par Value).

Here are the journal entries to record the stock issuance transaction on August 16:

August 16

Debit: Cash                           $28,000
    Credit: Preferred Stock                  $28,000

In this entry:

• Cash is debited for the total cash received from issuing the preferred stock.
• Preferred Stock is credited for the entire amount received since it is no-par stock, meaning it does not have a par value assigned.