Asked by anthony triguero on Jun 17, 2024
Verified
On July 6 Crevasse Corporation issued 2000 shares of its $1.50 par common stock. The market price of the stock on that date was $18 per share. Journalize the issuance of the stock.
Common Stock
Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.
Market Price
The current price at which an asset or service can be bought or sold in a public marketplace.
Shares
Units of ownership interest or equity in a corporation or financial asset.
- Familiarize yourself with the process of making journal entries for the issuance of preferred and common stock.
Verified Answer
SA
Satish ArkatalaJun 19, 2024
Final Answer :
July 6 Cash (2,000×$18)36,000Common Stock 3,000Paid in Capital in Excess of Par 33,000\begin{array}{llr} \text { July 6 } &\text { Cash \( (2,000 \times \$ 18) \)} &36,000\\& \text {Common Stock } &&3,000\\& \text {Paid in Capital in Excess of Par } &&33,000\end{array} July 6 Cash (2,000×$18)Common Stock Paid in Capital in Excess of Par 36,0003,00033,000
Learning Objectives
- Familiarize yourself with the process of making journal entries for the issuance of preferred and common stock.