Orange Office Supply Corporation completed the following stock issuance transactions
Mar. 28 Issued 5,000 shares of $4 stated value common stock for cash of $20 per share
May 1 Received merchandise inventory with a market value of $46,000 in exchange for 2,000 shares of the $4 stated value common stock.
May 14 Issued 450 shares of 5%, $20 par value preferred stock for $50 per share
Prepare the journal entries to record these transactions. Explanations are not required.
What will be an ideal response
Date Accounts and Explanation Debit Credit
Mar. 28 Cash ($20 per share x 5,000 shares) 100,000
Common Stock - $4 Stated Value
($4 per share x 5,000 shares) 20,000
Paid-In Capital in Excess of
Par—Common ($100,000 - $20,000 ) 80,000
May 1 Merchandise Inventory 46,000
Common Stock - $4 Stated Value
($4 per share v 2,000 shares) 8,000
Paid-In Capital in Excess of
Stated—Common ($46,000 - $8,000 ) 38,000
May 14 Cash ($50 per share x 450 shares) 22,500
Preferred Stock - $20 Par Value
($20 x 450 ) 9,000
Paid-In Capital in Excess of
Par—Preferred ($22,500 - $9,000 ) 13,500
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