Question

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

Jan.	10		Issued 69,500 shares for cash at $7 per share.
July	1		Issued 38,000 shares for cash at $10 per share.

Partially correct answer iconYour answer is partially correct.

Journalize the transactions, assuming that the common stock has a par value of $7 per share. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date                                                                      Jan. 10	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date                                                                      July 1	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

Journalize the transactions, assuming that the common stock is no-par with a stated value of $2 per share. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Choose a transaction date                                                                      Jan. 10	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
Choose a transaction date                                                                      July 1	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

Answer 1

Par value of $ 7
Jan. 10	Cash ( 69500 * 7 )	486500
	Common stock		486500
Jul-01	Cash ( 38000 * 10 )	380000
	Common stock ( 38000 * 7 )		266000
	Additional PIC in excess of par value		114000
Stated value of $ 2
Jan. 10	Cash ( 69500 * 7 )	486500
	Common stock ( 69500 * 2 )		139000
	Additional PIC in excess of stated value		347500
Jul-01	Cash ( 38000 * 10 )	380000
	Common stock ( 38000 * 2 )		76000
	Additional PIC in excess of stated value		304000