Question

During its first year of operations, Sweet Corporation had the following transactions pertaining to its common stock. Jan. Issued 84,000 shares for cash at $6 per share. 10 Mar. Issued 5,000 shares to attorneys in payment of a bill for $35,000 for services rendered in helping the company to incorporate. July Issued 32,000 shares for cash at $8 per share. Sept. Issued 61.700 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $4 per share. (b) Prepare the journal entries for these transactions, assuming that the common stock is no-par 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.) Account Titles and Explanation Debit Credit Date (a) (b)

Answer 1

Part A

Date	Account titles and explanation	Debit	Credit
1/10	Cash (84000*6)	504000
	Common Stock (84000*4)		336000
	Additional Paid-in Capital (84000*2)		168000
3/1	Organization Expense	35000
	Common Stock (5000*4)		20000
	Additional Paid-in Capital		15000
7/1	Cash (32000*8)	256000
	Common Stock (32000*4)		128000
	Additional Paid-in Capital (32000*4)		128000
9/1	Cash (61700*10)	617000
	Common Stock (61700*4)		246800
	Additional Paid-in Capital (61700*6)		370200

Part B

Date	Account titles and explanation	Debit	Credit
1/10	Cash (84000*6)	504000
	Common Stock (84000*2)		168000
	Paid-in Capital in Excess of Stated Value – Common stock (84000*4)		336000
3/1	Organization Expense	35000
	Common Stock (5000*2)		10000
	Paid-in Capital in Excess of Stated Value – Common stock		15000
7/1	Cash (32000*8)	256000
	Common Stock (32000*2)		64000
	Additional Paid-in Capital (32000*6)		192000
9/1	Cash (61700*10)	617000
	Common Stock (61700*2)		123400
	Paid-in Capital in Excess of Stated Value – Common stock (61700*8)		493600