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King Corporation began operations in January of the current year. The charter authorized the following stock:

Preferred stock: 10 percent, $11 par value, 41,000 shares authorized
Common stock: $6 par value, 86,800 shares authorized

During the current year, the following transactions occurred in the order given:

Issued 22,700 shares of common stock for $10 per share.
Sold 8,300 shares of the preferred stock at $21 per share.
Sold 2,700 shares of the preferred stock at $21 per share and 2,800 shares of common stock at $11 per share.

Required:
Provide the journal entries required to record each of the transactions in (a) through (c).

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anthougo

The journal entries to record each of the transactions in (a) through (c) for King Corporation are as follows:

Journal Entries:

a) Debit Cash $227,000

Credit Common Stock $136,200

Credit Additional Paid-in Capital, Common Stock $90,800

  • To record issuance of 22,700 shares of common stock for $10 per share.

b) Debit Cash $174,300

Credit 10% Preferred Stock $91,300

Credit Additional Paid-in Capital, Preferred Stock $83,000

  • To record issuance of 8,300 shares of the preferred stock at $21 per share.

c) Debit Cash $56,700

Credit 10% Preferred Stock $29,700

Credit Additional Paid-in Capital, Preferred Stock $27,000

  • To record issuance of 2,700 shares of the preferred stock at $21 per share.

d) Debit Cash $30,800

Credit Common Stock $16,800

Credit Additional Paid-in Capital, Common Stock $14,000

  • To record issuance of 2,800 shares of common stock at $11 per share.

What journal entries are used for?

Journal entries are used to initially record business transactions.

Journal entries identify the accounts affected by each transaction and further show the account to be debited or credited.

Transaction Analysis:

Authorized Share Capital:

Preferred stock: 10 percent, $11 par value, 41,000 shares

Common stock: $6 par value, 86,800 shares

a) Cash $227,000 Common Stock $136,200 Additional Paid-in Capital, Common Stock $90,800

Issuance of 22,700 shares of common stock for $10 per share.

b) Cash $174,300 10% Preferred Stock $91,300 Additional Paid-in Capital, Preferred Stock $83,000

Issuance of 8,300 shares of the preferred stock at $21 per share.

c) Cash $56,700 10% Preferred Stock $29,700 Additional Paid-in Capital, Preferred Stock $27,000

Issuance of 2,700 shares of the preferred stock at $21 per share.

d) Cash $30,800 Common Stock $16,800 Additional Paid-in Capital, Common Stock $14,000

Issuance of 2,800 shares of common stock at $11 per share.

Learn more about journal entries for stock issuance at https://brainly.com/question/26206078

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