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Prepare the journal entry to record each of the following four separate insurances of stock a. corporation issue 4000 share of 5$ par value common stock for 35000 cash

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The preparation of the journal entry to record the accounting transaction can be seen in the table below.

How do you prepare a journal entry to record an account?

Initially, when preparing a journal, you have to read the transaction carefully and comprehend it. Discover which accounts need to be credited and debited before entering a journal entry.

From the given information:

The common stock par value = no of shares × par value of shares

The common stock par value = 4000 shares × $5/ share

The common stock par value = $20000

However, the amount paid in capital excess of the par value for the common stock is:

= $35000 - $20000

= $15000

Therefore, the Journal entry can be computed as follows:

Date        Account Title                          Post Ref     Debit ($)    Credit ($)

             Cash                                                            35,000

        Paid-in capital in excess of par

       value, common stock                                                         20,000

       (To record the insurance of common stock)    

Learn more about journal entries here:

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