Questionurrent Attempt in Progress
On June 1, Forrest Inc. issues 3,000 shares of no-par common stock at a cash price of \$7 per share.
Journalize the issuance of the shares. (Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date Account Titles and Explanation
Debit
Cred
June
1
eTextbook and Media
List of Accounts
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Studdy Solution
STEP 1
1. Forrest Inc. is issuing no-par common stock.
2. The issuance involves 3,000 shares.
3. The cash price per share is \$7.
4. The transaction needs to be recorded in a journal entry format.
STEP 2
1. Determine the total cash received from the issuance.
2. Identify the accounts affected by the transaction.
3. Record the journal entry.
STEP 3
Calculate the total cash received from the issuance:
STEP 4
Identify the accounts affected by the transaction: - Cash account will be debited. - Common Stock account will be credited.
STEP 5
Record the journal entry for the issuance of shares:
Date: June 1
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