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Home > Business & Careers > Accounting   »   Par and no par value stocks

 
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Old Sep 15, 2007, 03:47 PM
ivory5130
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Par and no par value stocks

I need confirmation, I am just not getting this. I have to journalize these problems. Can you tell me if I did them correct.

a. 2,000 shares of no par common stock are issued to corporation's promoters in exchange for their effors estimated to be worth 30,000. Stock has no stated value.

Organization exp. dr. 30,000
common stock, no par value cr. 30,000

b. 2,000 shares of no par common stock are issued to corporation's promoters in exchange for their effors estimated to be worth 30,000. Stock has a $1.00 per share stated value.

Organization exp. dr. 30,000
common stock, stated value 1.00 cr. 2000
contributed captial in excess of stated value cr. 28,000

c. 4,000 shars of $10.00 par value common stock are issued for 70,000

cash dr. 70,000
common stock 10.00 par value cr. 40,000
contributed captial in excess of par value, common stock cr. 30,000

d. 1000 shares of 100 dollars par value preferred stock are issued for 120,000 cash

cash dr. 120,000
preferred stock cr. 100,000
contributed capital in excess of par value, preferred stock cr. 20,000

Can you tell me if I am right.

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