During its first year of operations, Endevor Corporation had the following transactions pertaining to its common stock
Question:
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.
Instructions
(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.
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,...
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a Apr 26 Cash 15000 X 450 67500 Common Stock 15000 X 1 15000 Paidin Capital in Excess of Pa...View the full answer
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Related Book For 
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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