Answer:
Debit Cash Account $370,000
Credit Common Stock Account $37,000
Credit Share Premium Account $333,000
Explanation:
Given a par value of $1, and an issue price of $10, the shares were issued at a premium of (10 - 1 = ) $9.
Therefore, the journal entry are as follows.
Debit Cash Account (37,000 * $10) = $370,000
Credit Common Stock Account (37,000 * $1) = $37,000
Credit Share Premium Account (37,000 * $9) = $333,000.
