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To expand operations, Aragon Consulting issued 170,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for...

dsdsdsd.PNGTo expand operations, Aragon Consulting issued 170,000 shares of previously unissued stock with a par value of $1. Investors purchased the stock for $21 per share.

 

a. Sale of the above stock.

b. Sale of above stock if the par value was $2 per share.

 

Prepare journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Top Answer

a) Number of shares issued = 170000 Par value of stock = $1 Purchase price of stock =$21 Total par value of stock = Number of... View the full answer

Journal entries of Common stock.png

ransaction
General Journal
Debit
Credit
Cash
3570909
Common Stock
170090
Paid in Capital in Excess of Common Stock
3409090
6
Cash
3570090
Common Stock
340090
Paid in Capital in Excess of Common...

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