1 answer

Pates Corp. issued 11,000 shares of no-par common stock for $14 per share. Read the requirements...

Question:

Pates Corp. issued 11,000 shares of no-par common stock for $14 per share. Read the requirements Requirement 1a. Record issua
ecounts and Ex Requirements 1. Record issuance of the stock if the stock: a. is true no-par stock. b. has stated value of $4
Pates Corp. issued 11,000 shares of no-par common stock for $14 per share. Read the requirements Requirement 1a. Record issuance of the stock if the stock is true no-par stock. (Record debits first, then credits Select the explanation on the last line of the journal entry table Date Accounts and Explanation Debit
ecounts and Ex Requirements 1. Record issuance of the stock if the stock: a. is true no-par stock. b. has stated value of $4 per share. 2. Which type of stock results in more total paid-in capital? Print Done

Answers

a) Journal entry

No Account and explanation Debit Credit
a Cash (11000*14) 154000
Common Stock 154000
(To record issue common stock)

b) Journal entry

No Account and explanation Debit Credit
b Cash (11000*14) 154000
Common Stock 44000
Paid in capital in excess of stated value-Common Stock 110000
(To record issue common stock)

2) Both type of stock has same total paid in capital

.

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