Question

9
prepare the journal entry to record jevonte company’s issuance of 42,000 shares of its common stock assuming the shares have a:
a. $4 par value and sell for $20 cash per share.
b. $4 stated value and sell for $20 cash per share.
view transaction list
journal entry worksheet
1 2
record the issuance of 42,000 shares of common stock assuming the shares
have a $4 par value and sell for $20 cash per share.
note: enter debits before credits.
transaction general journal debit credit
a.

Explanation:

Step1: Calculate Cash Received

Cash received = Number of shares × Price per share = \( 42,000 \times 20 = 840,000 \). Debit Cash for $840,000.

Step2: Calculate Common Stock (Par Value)

Common Stock = Number of shares × Par value = \( 42,000 \times 4 = 168,000 \). Credit Common Stock for $168,000.

Step3: Calculate Additional Paid - in Capital

Additional Paid - in Capital = Cash received - Common Stock = \( 840,000 - 168,000 = 672,000 \). Credit Additional Paid - in Capital for $672,000.

Answer:

Transaction	General Journal	Debit	Credit
	Common Stock, $4 Par Value		168000
	Additional Paid - in Capital in Excess of Par - Common Stock		672000