Answer:
a. Debit Cash $375,000
Credit Common Stock for $375,000
b. Debit Cash $450,000
Credit Paid-in capital in Excess of par for $75,000
Credit Common Stock $375,000
Explanation:
Preparation of the journal entry to record Zende Company’s issuance
a. Debit Cash $375,000
Credit Common Stock for $375,000.
(75,000 shares*$5 per share)
b. Debit Cash $450,000
(75,000 shares*$6 per share)
Credit Paid-in capital in Excess of par for $75,000
($450,000-$375,000)
Credit Common Stock $375,000
(75,000 shares*$5 per share)
