Question

Electronics completed stock issuance transactions. Prepare the journal entries to record these transactions. Explanations are not required. ​(Record debits​ first, then​ credits.)
June June ​7: Issued 3500 shares of $ 4 par value common stock for cash of $ 13 per share.

Answer 1

August ​16: Issued 100 shares of​ no-par preferred stock for $ 28000 cash.

Answer 2

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).

Answer 3

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.