Question $2$

Incorrect

Mark $0\mathrm{.}00$ out of $1\mathrm{.}67$

Flag question

Recording Entries for Common Stock Issuance

Record journal entries for the following separate transactions.

$-$Note: As needed, use the account "Common Stock" for parts a through e$,$ and use the accounts "Common StockClass $A"$ and "Common Stock$-$Class B$"$ for parts $f$ and $g.$

$-$Note: As needed, use the account "Paid$-$in Capital in Excess of Par$-$Common Stock" for parts a through e$,$ and use the accounts "Paid$-$in Capital in Excess of Par$-$Class A Common Stock" and "Paid$-$in Capital in Excess of Par$-$Class B Common Stock" for parts $f$ and $g.$

a$.$ Max Inc. issued $7,000$ shares of $$1$ par value common stock for $$20$ per share.

b$.$ Max Inc. issued $1,400$ shares of no$-$par common stock for $$25$ per share. The state of incorporation requires a minimum value per share of $$2.$

c$.$ Max Inc. issued $700$ shares of no$-$par common stock for $$18$ per share.

d$.$ Max Inc. issued $7,000$ shares of $$1$ par value common stock for $$18$ per share and incurred $$1,400$ in legal fees related to the stock issuance.

e$.$ Max Inc. issued $14,000$ shares of common stock $($ $$1$ par$)$ in exchange for equipment with a fair value of $$249,200.$

f$.$ Max Inc. issued $4,200$ shares of Class A common stock $($ $$1$ par$)$ and $5,600$ shares of Class B common stock $($ $$2$ par$)$ for $$112,000$ cash. At the time of issuance, the market price of the Class A common stock is $$15$ per share, and the market price of the Class B common stock is $$10$ per share.

g$.$ Max Inc. issued $4,200$ shares of Class A common stock $($ $$1$ par$)$ and $5,600$ shares of Class B common stock $($ $$2$ par$)$ for $$119,000$ cash. At the time of issuance, the market price of the Class A common stock is $$16$ per share, and the market price of the Class B common stock is unknown.

$\backslash$table$[[$Date$,$Account Name,Dr$.,$Cr$.],[$a$.$ Jan. $1,$Cash,$70,000,0],[$Common Stock,$0,0],[$Paid$-$in Capital in Excess of Par$-$Common Stock,$0,0],[$To record the issuance of stock.,,$],[$b$.$ Jan. $1,,0,0],[,0,0],[,0,0],[$To record the issuance of stock.,,$],[$c$.$ Jan. $1,,0,0],[,0,0],[$To record the issuance of stock.,,$],[$d$.$ Jan. $1,,0,0],[,0,0],[,0,0],[$To record the issuance of stock.,,$],[$e$.$ Jan. $1,,0,0],[,0,0],[,0,0],[$To record the issuance of stock.,$8,],[$f$.$ Jan. $1,,0,0],[,0,0],[,0,0],[,0,0],[,0,0],[$To record the issuance of stock.,,$],[$g$.$ Jan. $1,,0,0],[,0,0],[,0,0],[,0,0],[,0,0],[$To record the issuance of stock.,$x,]]$