Balboa Island Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common stock for cash at $13 per share On April 19, it issued 2,000 shares of common stock to attorneys in settlement of their bill of $27,500 for organization costs Journalize both issuances, assuming th...

Apr 1 Cash 780000 Common Stock 300000 Paidin Capital in Exces ...

Balboa Island Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common

Question:

Balboa Island began operations on April 1 by issuing 60,000 shares of $5 for cash at $13 per share. On April 19, it issued 2,000 shares of to attorneys in settlement of their bill of $27,500 for organization costs. Journalize both issuances, assuming the stock is not publicly traded.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...