1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 12-1 Capital Stock Transactions

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 12-1 Number of Shares Par Value per Share = Total Par Value × 1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amount. 5.Write the debit amount. 3.Enter the account title. 4.Record the receipt number. ISSUING PREFERRED STOCK AT PAR VALUE page 343 1 2345 800$100.00=$80,000.00 ×6

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 12-1 Number of Shares Value per Share =Value × 4.Record the receipt number. ISSUING PREFERRED STOCK FOR MORE THAN PAR VALUE page 344 1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amounts. 5.Write the debit amount. 3.Enter the account titles. 1 2 3 45 6 300$120.00=$36,000.00 × Total received300100.00= 30,000.00 × Par value $ 6,000.00Amount received in excess of par value

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 12-1 Number of Shares Value per Share =Value × 4.Record the receipt number.1.Calculate the amounts to be recorded. 2.Write the date. 6.Record the credit amount. 5.Write the debit amounts. 3.Enter the account titles. 1 2 3 4 6 page 345 500$100.00=$50,000.00 × Par value50090.00= 45,000.00 × Total received $ 5,000.00Total discount 5 ISSUING PREFERRED STOCK FOR LESS THAN PAR VALUE

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 12-1 ISSUING PREFERRED STOCK FOR ASSETS OTHER THAN CASH page 346 Number of Shares Value per Share =Value × 4.Record memorandum number.1.Calculate the amounts to record. 2.Write the date. 6.Record the credit amount. 5.Write the debit amount. 3.Enter the account titles. 1 2 3 4 6 100$120.00=$12,000.00 × Total received100100.00= 10,000.00 × Par value $ 2,000.00Amount received in excess of par value5

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 12-1 ISSUING COMMON STOCK WITH NO PAR VALUE page 347

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 12-1 ISSUING COMMON STOCK WITH A STATED VALUE page 347

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 12-1 TERM REVIEW discount on capital stock page 348