USA: +1 (725) 712-1730 
Sign in
Activation Exercise 13-1: Issuing Stock (Understanding the Business Transaction)
On January 6, Dee-Light Corporation issued for cash 16,650 shares of $1 par value common stock at $34 per share. On May 10, Dee-Light issued at par 4,550 shares of preferred 3% stock, $20 par for cash. On June 22, Dee-Light issued for cash 23,250 shares of 3%, $25 par value preferred stock at $33 per share. Determine the amount of cash that Dee-Light will receive from each of these stock issuances.
| Issue Date | Cash Received | |
| January 6 | $ _ | |
| May 10 | $_ | |
| June 22 | $ _ |
Recording in the Accounting System
a. Journalize the entry to record the January 6 issuance of common stock. If an amount box does not require an entry, leave it blank or enter “0”.
b. Journalize the entry to record the May 10 issuance of preferred stock.
c. Journalize the entry to record the June 22 issuance of preferred stock. If an amount box does not require an entry, leave it blank or enter “0”.
Expert Answer
| Issue Date | Cash Received | |
| Jan-06 | 566100 | |
| May-10 | 91000 | |
| Jun-22 | 767250 | |
| a | ||
| Cash | 566100 | |
| Common Stock | 16650 | |
| Paid in capital in excess of par-Common Stock | 549450 | |
| b | ||
| Cash | ||
| Preferred Stock | 91000 | |
| 91000 | ||
| c | ||
| Cash | 767250 | |
| Preferred Stock | 581250 | |
| Paid in capital in excess of par-Preferred Stock | 186000 |
