Question

On February 20, services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock. Complete the necessary journal entry by selecting the account names and dollar amounts from the drop-down menu.

Answer 1

Answer:

Journal entry for services valued at $60,000 relating to the organization of a corporation were performed in exchange for 1,000 shares of its $25 par value common stock.

In the books of Service performer

Dr. Investment (Asset) $60,000

Cr. Service Revenue   $60,000

In the books of Share Issuer

Dr. Corporation Charges (Expense)                           $60,000

Cr. Common Stock   (1,000 X 25)                               $25,000

Cr. Paid-In Capital in Excess of Par-Common Stock $35,000