Question

helppppppppppp pleaseee
Survivor Company was formed on January 1, 2006 by selling and issuing 20,000 shares of common stock at $15 per share. On December 1, 2007, the company declared a cash dividend of $10,000 which will be paid in cash on January 15, 2008. The annual accounting period ends December 31.

make a journal entry to record the sale and issuance of the common stock on jan 1,2006

a, the common stock was $10 par value per share @FutureMathProfessor

Answer 1

@chmvijay

Answer 2

Cash (20000 shares x $15) 300,000
Common Stock (20000 shares x $10)) 20,000
Add’l Paid in Capital (300,000 - 20,000) 10,,000

Answer 3

i found out some worked one ,,,and they had cash to be 3,000,000 and i wondered why they had that

Answer 4

1. Cash is increased by the number of shares sold multiplied by the market price of the stock to reflect the receipt of the proceeds
2. Stockholder's equity is increased by $300,000 to reflect the issuance of the stock. This total is divided between the common stock account and the additional paid in capital account. Both of these are stockholder's equity accounts.
3. The common stock account is increased by the par value multiplied by the number of shares sold. The par value is an arbitrary amount set by the board of directors when the class of stock is authorized by the shareholders for issuance.
4. The additional paid-in-capital account is increased by the excess of the proceeds from the stock sale less that portion of the proceeds credited to the common stock account.

Answer 5

Not enough 0's
Common stock 200,000
Add'l paid 100,000

Answer 6

oh kk..so that means their work was wrong

Answer 7

THey multiplied incorrectly?

Answer 8

oh okkk.. probably