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

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

Jan.    10        Issued 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.



Explanation
Jan. 10        Cash     =     (70,000 × $5)     =     $350,000
                       
July 1        Cash     =     (40,000 × $7)     =     $280,000
        Common Stock     =     (40,000 × $5)     =     $200,000
        Paid-in Capital in Excess of Par-Common Stock     =     (40,000 × $2)     =     $80,000

Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.


Explanation
Jan. 10        Cash     =     (70,000 × $5)     =     $350,000
        Common Stock     =     (70,000 × $1)     =     $70,000
        Paid-in Capital in Excess of Stated Value-Common Stock     =     (70,000 × $4)     =     $280,000
                       
July 1        Cash     =     (40,000 × $7)     =     $280,000
        Common Stock     =     (40,000 × $1)     =     $40,000
        Paid-in Capital in Excess of Stated Value-Common Stock     =     (40,000 × $6)     =     $240,000
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