Journal Entry

Flom · #1 May 3, 2007, 09:57 PM

How do you make a journal entry and t-acct for the following question:

The board of directors has authorized to 1,000,000 shares of $1 par value commone stock. On Jan. 2 Jayhawk COrp. issues 100,000 shares at $5 per issues

goldenbutterfly · May 6, 2007, 08:25 AM

You only need a memo entry to record the authorization. For the Jan 2 transaction (assuming the issuance was paid entirely in cash):

dr. Cash 500,000
cr. Common Stock 100000
cr. Additional paid in capital in excess of par 400000



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