Question #2

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

Jan. 10 Issued 60,000 shares for cash at $5 per share.

July 1 Issued 50,000 shares for cash at $8 per share.

Instructions:

(a) Journalize the transactions, assuming that the common stock has a par value of $5 per share.

(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share.

(c) Compare the effect the two Jan. 10 transactions would have on Roldans assets, liabilities, stockholders equity, and net income.

(d) Compare the effect the two July 1 transactions would have on Roldans assets, liabilities, stockholders equity, and net income.