E15-1 (LO1) Recording the Issuances of Common Stock

During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.

Date

No. of Shares Issued

Issued for

Amount

Jan. 10

80,000

Cash

$ 6.00

per share

Mar. 1

5,000

To attorneys in payment of a bill for services rendered in helping the company to incorporate

35,000

in total

Jul. 1

30,000

Cash

8.00

per share

Sept. 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.