Stock Issuance (Par, No-Par, and Stated Value) The following independent stock transactions occurred during January 20-- for Various Corporations: (a) Issued 5,800 shares of $10 par common stock for $58,000 cash. (b) Issued 3,800 shares of $10 par common stock for $49,000 cash. (c) Issued 4,900 shares of no-par common stock for $54,100 cash. (d) Issued 3,900 shares of no-par common stock for $41,500 cash. (e) Issued 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash. (f) Issued 2,700 shares of no-par common stock with a stated value of $8 per share for $22,800 cash. Prepare general journal entries for these stock transactions, identifying each transaction by letter. If an amount box does not require an entry, leave it blank.

Various Corporations

Journal Entries:

(a) Debit Cash $58,000

Credit Common stock $58,000

To record the issuance of 5,800 shares of $10 par common stock for $58,000 cash.

(b) Debit Cash $49,000

Credit Common stock $38,000

Credit Additional Paid-in Capital $11,000

To record the issuance of 3,800 shares of $10 par common stock for $49,000 cash.

(c) Debit Cash $54,100

credit Common stock $54,100

To record the issuance of 4,900 shares of no-par common stock for $54,100 cash.

(d) Debit Cash $41,500

Credit Common stock $41,500

To record the issuance of 3,900 shares of no-par common stock for $41,500 cash.

(e) Debit Cash $50,400

Credit Common stock $50,400

To record the issuance of 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash.

(f) Debit Cash $22,800

Credit Common stock $21,600

Credit Additional Paid-in Capital $1,200

To record the issuance of 2,700 shares of no-par common stock with a stated value of $8.

Explanation:

a) Data and Analysis:

(a) Cash $58,000 Common stock $58,000

Issued 5,800 shares of $10 par common stock for $58,000 cash.

(b) Cash $49,000 Common stock $38,000 Additional Paid-in Capital $11,000

Issued 3,800 shares of $10 par common stock for $49,000 cash.

(c) Cash $54,100 Common stock $54,100

Issued 4,900 shares of no-par common stock for $54,100 cash.

(d) Cash $41,500 Common stock $41,500

Issued 3,900 shares of no-par common stock for $41,500 cash.

(e) Cash $50,400 Common stock $50,400

Issued 6,300 shares of no-par common stock with a stated value of $8 per share for $50,400 cash.

(f) Cash $22,800 Common stock $21,600 Additional Paid-in Capital $1,200

Issued 2,700 shares of no-par common stock with a stated value of $8 per share for $22,800 cash.

answer; i believe that the correct answer is (d); the business benefits because owners can share responsibilities;