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Horngren'S Financial And Managerial Accounting
Found in: Page 712

Short Answer

Journalizing issuance of stock

Steller Systems completed the following stock issuance transactions:

May 19 Issued 1,700 shares of $3 par value common stock for cash of $10.50 per share.

Jun. 3 Issued 300 shares of $9, no-par preferred stock for $15,000 cash.

11 Received equipment with a market value of $68,000 in exchange for 5,000 shares of the $3 par value common stock.


1. Journalize the transactions. Explanations are not required.

Issued 1,700 shares on premium of $7.5, 300 shares for $15,000, and 5,000 shares in exchange of $68,000 equipment on premium of $53,000.

See the step by step solution

Step by Step Solution

Step 1: Basic Introduction-

Market value is the current price of an asset in the marketplace. Market value also alludes to the market capitalization of a publicly traded corporation.

Step 2: Journals





May 19

Cash (1,700 * $10.50)


Common stock (1,700 * $3)


Paid-in capital in excess of par


Jun 3



Preferred stock


Jun 11



Common stock


Paid-in capital in excess of par


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