Prepare journal entries for each transaction

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Reference no: EM131427318

Several independent transactions are as follows.

1. 10,000 shares of no-par common stock are issued for $50 per share.

2. 10,000 shares of $1 par value common stock are issued for $40 per share.

3. 10,000 shares of $10 par value common stock are issued for $30 per share.

4. 5,000 shares of no-par preferred stock are issued for $80 per share.

REQUIRED:

a. Prepare journal entries for each transaction.

b. What is the significance of par value from a financial accounting standpoint? Is par value significant in any economic sense?

Reference no: EM131427318

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