Crowns issed 40,000 shares of $5 par value common stock for $14 per share. Prepare journal entries using a chart of acct.

To prepare the journal entries for the issuance of 40,000 shares of $5 par value common stock for $14 per share, you can follow these steps:

Step 1: Create a chart of accounts
Before preparing the journal entries, it is essential to have a chart of accounts in place. This chart helps you categorize and organize your financial transactions. You can use a standard chart of accounts or create a customized one based on your company's needs.

Here's an example of a simplified chart of accounts for a typical company:

| Account Number | Account Name |
| -------------- | -------------------------------- |
| 1000 | Cash |
| 1500 | Common Stock |
| 2000 | Additional Paid-in Capital |
| 3000 | Retained Earnings |
| 4000 | Revenue |
| 5000 | Expenses |

Step 2: Identify the accounts affected by the transaction
In this case, the following accounts will be impacted:

- Cash (to record the cash received from the issuance of shares)
- Common Stock (to record the par value of the shares)
- Additional Paid-in Capital (to record the excess of the issue price over the par value)

Step 3: Prepare the journal entries
Based on the accounts identified above, you can prepare the journal entries as follows:

1. To record the issuance of shares:
Debit: Cash (40,000 shares x $14) = $560,000
Credit: Common Stock (40,000 shares x $5) = $200,000
Credit: Additional Paid-in Capital (plug) = $360,000

Once you have prepared the journal entries, you can proceed to post them to the respective accounts in your chart of accounts.

Please note that the example above assumes no intermediary fees or transaction costs. If there were any such fees involved, additional journal entries would be required to account for those expenses.