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TNT Corporation Is Authorized to Issue 75,000 Shares of $1

Question 27

Essay

TNT Corporation is authorized to issue 75,000 shares of $1 par value common stock. Prepare the journal entries for the following transactions (omit explanations):
a. Issued 50,000 shares at $25 per share.
b. Issued 500 shares in exchange for consulting services; the estimated fair value is $20 per share.
c. Issued 7,000 shares at $30 per share, paying an underwriter $800 in stock issuance costs.

Correct Answer:

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a.
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