Options Trading Tutorial

Stock Accounting Help Very Basic Problem Please Assist?

On June 1, Herrera Inc. issues 2,800 shares of no-par common stock at a cash price of $9 per share. Journalize the issuance of the shares assuming the stock has a stated value of $1 per share. (For multiple debit/credit entries, list accounts in order of magnitude.) Debit Cash For $25,200 Credit (BLANK) For $22,400 Credit (BLANK) For $2,800 It is weird because all the amounts are correct. Those dollar amounts are correct and debit cash for $25,200 is correct. But.....I put for the first (BLANK) Common Stock and it was incorrect and I tried to put for the first (BLANK) Treasury Stock and it was incorrect again. Second Blank I put paid in capital in excess of stated value and also incorrect. My options are dividends payable, retained earnings, common stock dividends distributable, common stock, cash, preferred stock, paid in capital in excess of par value, paid in capital in excess of stated value, and treasury stock. Good Luck!

Public Comments

1. I think your answers are reversed. The first one should be Paid-in-Cap. The second should be Common Stock. If that doesn't work, I think maybe the program is broken.