May ​19: Issued 1,600 shares of ​$2 par value common stock for cash of ​$13.00 per share.

Question

Journalize

Answer 1

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.

Answer 2

Jun. ​3: Issued 260 shares of ​$9​, ​no-par preferred stock for ​$13,000 cash.
Journalize

Answer 3

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.

Answer 4

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

Answer 5

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.

Answer 6

Total paid-in capital generated from these transactions amounts to [blank].

Answer 7

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.

Answer 8

That is incorrect

Answer 9

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!