E15-1 During its first year of operations, Collin Raye Corporation had
the following transactions pertaining to its common stock.
Jan. 10 Issued 80,000 shares for
cash at $6.00 per share.
Mar. 1 Issued 5,000 shares to
attorneys in payment of a bill for $35,000
for services rendered in helping
the company to incorporate.
July. 1 Issued 30,000 shares for
cash at $8.00 per share.
Sept. 1 Issued 60,000 shares for
cash at $10.00 per share.
Instructions
(a) Prepare the journal entries for these
transactions, assuming that the common stock has a par value of $5.00 per
share.
(b) Prepare the journal entries for these transactions, assuming that the common stock is no par with a stated value of $3.00 per share.
(b) Prepare the journal entries for these transactions, assuming that the common stock is no par with a stated value of $3.00 per share.
TUTORIAL PREVIEW
(a) Prepare the journal entries for these
transactions, assuming that the common stock has a par value of $5.00 per
share.
|
Jan. 10
|
Cash
(80,000 shares × $6.00 per share)
|
480,000
|
|
|
Common
Stock (80,000 × $5.00 par value)
|
|
400,000
|
|
|
Paid-in
Cap in Excess of Par [80,000 × ($6.00 - $5.00)]
|
|
80,000
|
