
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:**Osage Corporation Stock Issuance Overview**
**Context:** Osage Corporation has issued 2,000 shares of stock.
**Instructions:**
Prepare the journal entries for the stock issuance based on the different scenarios provided below:
a. The stock has a par value of $6 per share and is issued for a total amount of $52,000.
b. The stock has a stated value of $6 per share and is issued for a total amount of $52,000.
c. The stock has no par or stated value and is issued for a total amount of $52,000.
d. The stock has a par value of $6 per share and is issued to attorneys as payment for services during the incorporation process, with a value of $32,000.
e. The stock has a par value of $10 per share and is issued in exchange for land valued at $92,000.
**Notes for Consideration:**
- Par value refers to the face value or nominal value of the stock as stated in the corporate charter.
- Stated value is an assigned value per share that the board of directors may set to account for shares issued without a par value.
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