Question

During its first year of operations, Skysong, Inc. had the following transactions pertaining to its common stock.

Jan.	10		Issued 71,500 shares for cash at $6 per share.
July	1		Issued 36,500 shares for cash at $8 per share.

Journalize the transactions, assuming that the common stock has a par value of $6 per share. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Choose a transaction date Jan. 10July 1 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Choose a transaction date Jan. 10July 1 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount LINK TO TEXT

Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Choose a transaction date Jan. 10July 1 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Choose a transaction date Jan. 10July 1 Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount

Answer 1

Solution:

a)

Journal entry:

Date	Account tilte and explanation	Debit	Credit
Jan 10	cash(71,500 *6)	$429,000
	Common stock		$429,000
	(share isuued for cash at par )
July	Cash(36,500 *8)	292,000
	Common stock(36,500 *6)		219,000
	Share premium		73,000
	(share issued for cash at premium)

b)

Date	Account title and explanation	Debit	credit
Jan 10	Cash	$429,000
	common stock(71,500*2)		$143,000
	Share premium		$286,000
	(share issued for cash)
July 1	Cash	$292,000
	common stock(36,500 *2)		$73,000
	Share premium		$219,000
	(share issued for cash)

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