During its first year of operations, Endevor Corporation had the following transactions pertaining to its common stock.
Apr. 26 Issued 15,000 shares for cash at $4.50 per share.
May 11 Issued 10,000 shares to attorneys in payment of a bill for $48,000 for services rendered in helping the company to incorporate.
Aug. 1 Issued 20,000 shares for cash at $5 per share.
Nov. 1 Issued 10,000 shares for cash at $7 per share.
Required:
(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $1 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.
(a) Apr. 26 Cash Answer
67500
Common Stock Answer
15000
Paid-in Capital in Excess of Par Answer
52500
May 11 Organization Expense Answer
48000
Common Stock Answer
10000
Paid-in Capital in Excess of Par Answer
38000
Aug. 1 Cash Answer
100000
Common Stock Answer
20000
Paid-in Capital in Excess of Par Answer
80000
Nov. 1 Cash Answer
70000
Common Stock Answer
10000
Paid-in Capital in Excess of Par Answer
60000
(b) Apr. 26 Cash Answer
Common Stock Answer
Paid-in Capital in Excess of Stated Value Answer
May 11 Organization Expense Answer
Common Stock Answer
Paid-in Capital in Excess of Stated Value Answer
Aug. 1 Cash Answer
Common Stock Answer
Paid-in Capital in Excess of Stated Value Answer
Nov. 1 Cash Answer
Common Stock Answer
Paid-in Capital in Excess of Stated Value Answer
