Smart Electronics Completed the Following Stock Issuance Transactions Prepare the Journal Entries to Record These Transactions

question 124

Essay

Smart Electronics completed the following stock issuance transactions:
$$\begin{array} { | l | l | } \hline \text { June 7 } & \text { Issued 4,000 shares of } \$ 3 \text { par value common stock for cash of } \\&\$ 12 \text { per share }\\\hline \text { Aug. 16 } & \text { Issued } 400 \text { shares of no-par preferred stock for } \$ 25,000 \text { cash } \\\hline & \text { Received equipment with a market value of } \$ 75,000 \text { in } \\\text { Sept. 19 } & \text { exchange for 5,000 shares of the } \$ 3 \text { par value common stock } \\\hline\end{array}$$ Prepare the journal entries to record these transactions. Explanations are not required.

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Definitions:

Holder in Due Course

An individual in possession of a negotiable instrument, obtained in good faith and for value, and thereby has specific rights to enforce the instrument.

Irregular

Something that is not following the usual rules, patterns, or expected behavior; often refers to inconsistent or erratic actions.

Real Defenses

Legitimate legal defenses that can be used against claims in a transaction, particularly in the context of negotiable instruments, such as fraud or illegality.

Negotiable Instrument

is a document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.