E14.1 (LO1) Recording the Issuances of Common Stock
During its first year of operations, Collin Raye Corporation had the following transactions pertaining
to issuances of its common stock.
No. of Shares
Date Issued Issued for Amount
1/10 80,000 Cash $ 6.00 per share
To attorneys in payment of a bill for services
3/1 5,000 rendered in helping the company to 35,000 in total
incorporate
7/1 30,000 Cash $ 8.00 per share
9/1 60,000 Cash 10.00 per share
Instructions
a. Prepare the journal entries for these transactions, assuming that the common stock has a par
value of $5 per share.
b. Prepare the journal entries for these transactions, assuming that the common stock is no par
with a stated value of $3 per share.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell),
into the yellow shaded input cells.
a. Debit Credit
1/10
3/1
7/1
9/1
,b. Debit Credit
1/10
3/1
7/1
9/1
, Solution: E14.1 (LO1) Recording the Issuances of Common Stock
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to
issuances of its common stock.
No. of Shares
Date Issued Issued for Amount
1/10 80,000 Cash $ 6.00 per share
To attorneys in payment of a bill for services
3/1 5,000 rendered in helping the company to 35,000 in total
incorporate
7/1 30,000 Cash $ 8.00 per share
9/1 60,000 Cash 10.00 per share
Instructions
a. Prepare the journal entries for these transactions, assuming that the common stock has a par
value of $5 per share.
b. Prepare the journal entries for these transactions, assuming that the common stock is no par with
a stated value of $3 per share.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
a. Debit Credit
1/10 Cash 480,000
Common Stock 400,000
Paid-in Capital in Excess of Par-Common Stock 80,000
3/1 Organization Expense 35,000
Common Stock 25,000
Paid-in Capital in Excess of Par-Common Stock 10,000
7/1 Cash 240,000
Common Stock 150,000
Paid-in Capital in Excess of Par-Common Stock 90,000
9/1 Cash 600,000
Common Stock 300,000
Paid-in Capital in Excess of Par-Common Stock 300,000
During its first year of operations, Collin Raye Corporation had the following transactions pertaining
to issuances of its common stock.
No. of Shares
Date Issued Issued for Amount
1/10 80,000 Cash $ 6.00 per share
To attorneys in payment of a bill for services
3/1 5,000 rendered in helping the company to 35,000 in total
incorporate
7/1 30,000 Cash $ 8.00 per share
9/1 60,000 Cash 10.00 per share
Instructions
a. Prepare the journal entries for these transactions, assuming that the common stock has a par
value of $5 per share.
b. Prepare the journal entries for these transactions, assuming that the common stock is no par
with a stated value of $3 per share.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell),
into the yellow shaded input cells.
a. Debit Credit
1/10
3/1
7/1
9/1
,b. Debit Credit
1/10
3/1
7/1
9/1
, Solution: E14.1 (LO1) Recording the Issuances of Common Stock
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to
issuances of its common stock.
No. of Shares
Date Issued Issued for Amount
1/10 80,000 Cash $ 6.00 per share
To attorneys in payment of a bill for services
3/1 5,000 rendered in helping the company to 35,000 in total
incorporate
7/1 30,000 Cash $ 8.00 per share
9/1 60,000 Cash 10.00 per share
Instructions
a. Prepare the journal entries for these transactions, assuming that the common stock has a par
value of $5 per share.
b. Prepare the journal entries for these transactions, assuming that the common stock is no par with
a stated value of $3 per share.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into
the yellow shaded input cells.
a. Debit Credit
1/10 Cash 480,000
Common Stock 400,000
Paid-in Capital in Excess of Par-Common Stock 80,000
3/1 Organization Expense 35,000
Common Stock 25,000
Paid-in Capital in Excess of Par-Common Stock 10,000
7/1 Cash 240,000
Common Stock 150,000
Paid-in Capital in Excess of Par-Common Stock 90,000
9/1 Cash 600,000
Common Stock 300,000
Paid-in Capital in Excess of Par-Common Stock 300,000
