P 208A L03 a Cr PaidIn Capital in Excess of Par Common Stock

P 20-8A (L03) (a) Cr. Paid-In Capital in Excess of Par- Common Stock: $5,000 CLGL STOCK SUBSCRIPTIONS Juneau & Associates had the following stock transactions during the year: (a) Received subscriptions for 100,000 shares of $1 par common stock for $105,000. (b) Received subscriptions for 5,000 shares of $15 par, 8% preferred stock for $80,000 (c) Received a payment of $55,000 on the (d) Received a payment of $40,000 on the (e) Issued 40,000 shares of $1 par common common stock subscription. preferred stock subscription. stock in exchange for a truck with a fair market value of $48,000. (f) Received the balance in full for the common stock subscription and issued the stock 808

Solution

Journal Entries :-

S.No.	Particulars	Debit($)	Credit($)
a)	Application for Common Stock A/c Dr.	105000
	To Common stock A/c		100000
	To Paid in Capital excess of Par		5000
b)	Application for 8% Preferred Stock A/c Dr.	80000
	To 8% Preferred Stock A/c		75000
	To Paid in Capital Excess of Par		5000
c)	Cash A/c Dr.	55000
	To Application for Common Stcok		55000
d)	Cash A/c Dr.	40000
	To Application for 8% Preferred Stock A/c		40000
e)	Truck a/c Dr.	48000
	To Common Stcok A/c		40000
	To Paid in Capital Excess of Par		8000
f)	Cash A/c Dr. ($105000 - $55000)	50000
	To Application for Common Stock A/c		50000
g)	Cash A/c Dr. ($80000 - $40000)	40000
	To Application for 8% Preferred Stock		40000