The partners who own Joy Rafts wished to avoid the unlimited personal liability of the partnership form of business, so they incorporated as Joy Rafts, Inc. The charter from the state of Texas authorizes the corporation to issue 140,000 shares of $12 par common stock. In its first month, Joy Rafts completed the following transactions:

DATA TABLE

Jul 6 Issued 600 shares of common stock to the promoter for assistance with issuance of the common stock. The promotional fee was $13,800. Debit Organization Expense.

Jul 9 Issued 15,000 shares of common stock to BettyCallahan and 17,000 shares to JulieJoy in return for cash equal to the stock's market value of $27 per share. The two women were partners in Joy Rafts, Co.

Jul 26 Issued 1,200 shares of common stock for $15 cash per share.

Requirement 1. Record the transactions in the journal. (Record debits first, then credits. Exclude explanations from any journal entries.)

Requirement 2. Prepare the stockholders' equity section of the Joy Rafts Inc., balance sheet at July 31, 2017. The ending balance of Retained Earnings is $80,000.

(Enter the accounts in the proper order for the stockholders' equity section of the balance sheet.)

I don't understand the math. For example:

Journal Entry

Date ACCOUNTS DEBITS CREDITS

Jul 6

Organization Expense 13,800

Common Stock

7,200

Paid-in Capital in Excess of ParCommon

6,600

Where is the 7,200 and 6,600 coming from?