During the first year of operations Foyle Corporation had th

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

Jan 10 Issues 70,000 shares for cash at $5 per share

July 1 Issued 40,000 shares for cash at $7 per share

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

Solution

Jan 10       Issues 70,000 shares for cash at $5 per share
Dr Cash 350,000 ($5 x 70,000)
Cr Common Stock 350,000
July 1        Issued 40,000 shares for cash at $7 per share
Dr Cash 280,000 ($7 x 40,000)
Cr Paid-In Capital in Excess of Par 80,000 (($7-$5) x 40,000)
Cr Common Stock 200,000