Ncentive Corporation was authorized to issue 12,000 shares of common stock, each with a $2 par value. During its first year, the following selected transactions were completed:

a. Issued 5,100 shares of common stock for cash at $21 per share.

b. Issued 1,100 shares of common stock for cash at $24 per share.
Prepare the journal entry required for each of these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer and Explanation:

The journal entries are as follows

a. Cash A/c Dr $107,100         (5,100 shares × $21)

    To Common Stock $10,200         (5,100 shares × $2)

    To  Additional Paid-in Capital in excess of par - Common Stock $96,900

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

b.  Cash A/c Dr $26,400         (1,100 shares × $24)

    To Common Stock $2,200        (1,100 shares × $2)

    To  Additional Paid-in Capital in excess of par - Common Stock $24,200

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

It increased the both cash and common stock stock and the additional paid in capital account as well

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.