Question

During its first year of operations, Nash Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 85,000 shares for cash at $6 per share. Mar Issued 5,000 shares to attorneys in payment of a bill for $36,100 for services rendered in July 1 Issued 31,300 shares for cash at $8 per share. Sept. 1 Issued 63,200 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par (b) Prepare the journal entries for these transactions, assuming that the common stock is no-par helping the company to incorporate. value of $5 per share. with a stated value of $2 per share (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 o for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

a) Journal entries

Date	account and explanation	debit	credit
Jan 10	Cash (85000*6)	510000
	Common Stock (85000*5)		425000
	Paid in capital in excess of par value-Common Stock		85000
	(To record issue common stock)
Mar 1	Organisation fees	36100
	Common Stock (5000*5)		25000
	Paid in capital in excess of par value-Common Stock		11100
	(To record issue common Stock)
July 1	Cash (31300*8)	250400
	Common Stock (31300*5)		156500
	Paid in capital in excess of par value-Common Stock		93900
	(To record issue common Stock)
Sep 1	Cash (63200*10)	632000
	Common Stock (63200*5)		316000
	Paid in capital in excess of par value-Common Stock		316000
	(To record issue common stock)

b) Journal entries

Date	account and explanation	debit	credit
Jan 10	Cash (85000*6)	510000
	Common Stock (85000*2)		170000
	Paid in capital in excess of stated value-Common Stock		340000
	(To record issue common stock)
Mar 1	Organisation fees	36100
	Common Stock (5000*2)		10000
	Paid in capital in excess of stated value-Common Stock		26100
	(To record issue common Stock)
July 1	Cash (31300*8)	250400
	Common Stock (31300*2)		62600
	Paid in capital in excess of stated value-Common Stock		187800
	(To record issue common Stock)
Sep 1	Cash (63200*10)	632000
	Common Stock (63200*2)		126400
	Paid in capital in excess of stated value-Common Stock		505600
	(To record issue common stock)