Business, 27.12.2019 01:31 Juliianatafur22

Flint corporation issued 700 shares of no-par common stock for $7,800. prepare flint’s journal entry if (a) the stock has no stated value, and (b) the stock has a stated value of $2 per share

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Answer from: Hazard970

Flint corporation journal $

Date

1. Bank account Dr 7800

Common stock Or. 7800

Narration. Issuance of 700 ordinary stock for $7800 .

2. Bank account Dr 7800

Common stock Cr. 1400

Share premium. 6400

Narration. Issuance of 700 ordinary at $7800 at a premium.

Explanation:

Shares can be issued at par, premium or discount. When it's issued at it's nominal value it's said to be issued at par, when it's issued above it's nominal value it's said to be issued at a premium and when it's issued below par it's said to issued at a discount.

Answer from: moningersavannah

A. Flint’s journal entry if the stock has no stated value

Dr Bank7,800

Cr Common Stock7,800

To record the issuance of 700 shares of stock.

B. Flint’s journal entry if the stock has a stated value of $2 per share

Dr Bank7,800

Cr Common Stock..(700 shares @ $2 par per share1,400

Cr Paid-In Capital in Excess of Par Value6,400

To record the issuance of 700 shares of stock @ $2 par per share.

Explanation:

In scenario a, where there is no stated par value, there is no way to distinguish between share capital and share premium, hence everything is recorded under common stock but in scenario b, with par value stated, the excess amounts have to be recorded separately as amount received in excess of par value.

Answer from: Quest

How is this a question and how u need an answer for this

Answer from: Quest

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

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Flint corporation issued 700 shares of no-par common stock for $7,800. prepare flint’s journal entry...

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