During its first year of operations, Grouper Corp. had these transactions pertaining to its common stock....

During its first year of operations, Grouper Corp. had these transactions pertaining to its common stock.

Jan. 10		Issued 25,600 shares for cash at $4 per share.
July 1		Issued 53,000 shares for cash at $8 per share.

(a)		Journalize the transactions, assuming that the common stock has a par value of $4 per share.
(b)		Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share.

Solutions

Expert Solution

(a)Journalize the transactions, assuming that the common stock has a par value of $4 per share.

January 10

Dr Cash (25600 x $4) $102400

Cr Common Stock $102400

July 1

Dr Cash (53000 x $8) $4,24,000

Cr Common Stock (53000x$4) $2,12,000

Cr Additional Paid-in Capital $2,12,000

(b)Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share.

January 10

Dr Cash (25600 x $4) $1,02,400

Cr Common Stock (25600x$2) $51,200

Cr Paid-in Capital in Excess of Stated Value - CS $51,200

July 1

Dr Cash (53000 x $8) $4,24,000

Cr Common Stock (53000x$2) $1,06,000

Cr Paid-in Capital in Excess of Stated Value - CS $3,18,000

ekkarill92 answered 11 months ago

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