Question

During its first year of operations, Cole's Electronics Inc. completed the following transactions relating to shareholders' equity.

January		5:		Issued 2,400,000 shares of common stock for $21 per share.
February		12:		Issued 16,000 shares of common stock to accountants for $336,000 of professional services.

The articles of incorporation authorize 5,000,000 shares of common stock with a par of $1 per share and 1,000,000 preferred shares with a par of $100 per share.

Required:
Record the above transactions in general journal form. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Date	Account titles and explanation		Debit(in $)	Credit(in $)
Jan-05	Cash(2,400,000*$21)		50400000
	Common Stock(2,400,000*$1)			2400000
	Paid in capital in excess of par-Common Stock(2,400,000*$20)			48000000
	(to common stock issued in premium)
Feb-12	Professional Service expenses		336000
	Common Stock(16000*$1)			16000
	Paid in capital in excess of par-Common Stock(2,400,000*$20)			320000
	(to common stock issued in lieu of professionla service)