In a rationing system, offering a landlord extra cash to guarantee the availability of an apartment is

Rationing system refers to the system of managed distribution of resources that are considered scarce. How this controls the distribution is by controlling the size of the ration. Therefore, if someone offers a landlord extra cash to make sure that the apartment would be guaranteed available is like performing business in the black market.

The journal entry for the issuance of the common stock is shown below:

Explanation:

Cash A/cDr    $33,000

     Common Stock A/cCr   $30

     Paid in Capital A/cCr   $32,970

Working Notes:

Cash = Number of shares × Issue Price

= 3,000 × $11

= $33,000

Common Stock = Number of Shares × Par Value

= 3,000 ×  $0.01

= $30

Paid in Capital = Cash - Common stock

= $33,000 - 30

= $32,970