Chapter 6
Corporations: Contributed Capital and Dividends
292
AP-5B (
4
)
Sherm & Co. issued 12,100 common shares for $91,000 on June 3, 2016.
Required
a) Write the journal entry to record the transaction.
Date
Account Title and Explanation
Debit
Credit
b) In addition to shares issued for cash, on June 3, 2016 Sherm & Co. issued an additional
13,600 common shares in exchange for machinery and a building. The machinery was
valued at $61,000 and the building was valued at $101,000. The company could not
readily determine the fair value of the shares. Record the transaction.
Date
Account Title and Explanation
Debit
Credit
