Question & Answer: Johnson Corporation had the following transactions: Issued 7,000 shares of common stock with a stated valu…..

25. (12 points) Johnson Corporation had the following transactions: 1. Issued 7,000 shares of common stock with a stated value of $15 per share for $155,000. 2. Issued 3,000 shares of $100 par value preferred stock at $117 per share for cash. Required Prepare the journal entries for the above transactions. Omit explanations Date Account Debit Credit

Johnson Corporation had the following transactions: Issued 7,000 shares of common stock with a stated value of $15 per share for $155,000. Issued 3,000 shares of $100 par value preferred stock at $117 per share for cash. Prepare the journal entries for the above transactions.

Expert Answer

Debit Bank /Cash A/c $ 155000

Credit COmmon Stock $ 105000 (7000 share * $ 15)

Credit Paid In capital in excess of Par Value $ 50000

Debit Cash $ 351000

Credit Preferred Stock $ 300000 (3000 shares * $ 100)

Credit Paid In capital in excess of Par Value $ 50000

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