Question

During its first year of operations, Bebo's Corporation had the following transactions pertaining to its common...

During its first year of operations, Bebo's Corporation had the following transactions pertaining to its common stocks:

Jan 10: Issued 90,000 shares for cash at $10 per share

July 1: issued 50,000 shares for cash at $20 per share

Instructions

(a) Journalize the transactions, assuming that the common stock has a par value of $10 per per share.

(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $5 per share.

Homework Answers

Answer #1
a
Date Account Titles and Explanation Debit Credit
Jan 10 Cash 900000 =90000*10
    Common stock 900000
July 1 Cash 1000000 =50000*20
    Common stock 500000 =50000*10
    Paid in Capital in excess of par-Common stock 500000
b
Date Account Titles and Explanation Debit Credit
Jan 10 Cash 900000
    Common stock 450000 =90000*5
    Paid in Capital in excess of stated value-Common stock 450000
July 1 Cash 1000000
    Common stock 250000 =50000*5
    Paid in Capital in excess of stated value-Common stock 750000
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