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Issued 23,600 shares of common stock to each of the three organizers and collected $10 cash per
share from each of them.
Prepare the journal entries indicated for each of the above transactions. (If no entry is required
for a transaction/event, select "No journal entry required" in the first account fieldKing
Corporation began operations in January 2014. The charter authorized the following capital
stock: Preferred stock: 10 percent, $11 par, authorized 40,600 shares Common stock: $6
par, authorized 86,600 sharesDuring 2014, the following transactions occurred in the order
given:
Solution
Journal entriesAccount Title & ExplainationDebitCredita)Cash236000Common
Stock141600Additional Paid in Capital- Common Stock94400b)Cash174300Preferred
Stock91300Additional Paid in Capital- Preferred Stock83000C)Cash16500Common
Stock9000Additional Paid in Capital- Common Stock7500Cash56700Preferred
Stock29700Additional Paid in Capital- Preferred Stock27000

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