On January 22, Zentric Corporation issued for cash 160,000 shares of no-par common stock at $8. On February 14, Zentric issued at par value 45,000 shares of preferred 2% stock, $50 par for cash. On August 30, Zentric issued for cash 10,000 shares of preferred 2% stock, $50 par at $56. Required:
Journalize the entries to record the January 22, February 14, and August 30 transactions.

Zentric Corporation

Journal Entries:

January 22

Debit Cash $1,280,000

Credit Common Stock $1,280,000

To record the issuance of 160,000 shares, no-par at $8.

February 14

Debit Cash $2,250,000

Credit 2% Preferred Stock $2,250,000

To record the issuance of 45,000 shares , $50 par for cash.

August 30

Debit Cash $560,000

Credit 2% Preferred Stock $500,000

Credit  Additional Paid-in Capital - Preferred $60,000

To record the issuance of 10,000 shares, $50 par at $56.

Explanation:

a) Data and Analysis:

January 22 Cash $1,280,000 Common Stock $1,280,000

Issuance of 160,000 shares at $8

February 14: Cash $2,250,000 2% Preferred Stock $2,250,000

Issuance of 45,000 shares , $50 par for cash.

August 30: Cash $560,000 2% Preferred Stock $500,000 Additional Paid-in Capital - Preferred $60,000

Issuance of 10,000 shares, $50 par at $56.