Question

Jan. 10 Issued 27,100 shares for cash at $6 per share. -Expense Jan. 10 July 1 Asset, Liability or Equity item that was reduced.)

Answer 1

	If common stock has par value of $6
	Assets	Liabilities	Shareholders equity		Retained earnings
	Cash		Common stock	PIC in exc of par	Revenue	Expenses	Dividend
Jan 10	$162,600		$162,600
July 1	$423,500		$363,000	$60,500
			(60,500*6)	(60,500*1)
	If common stock has par value of $3
	Assets	Liabilities	Shareholders’ equity		Retained earnings
	Cash		Common stock	PIC in exc of par	Revenue	Expenses	Dividend
Jan 10	$162,600		$81,300	$81,300
July 1	$423,500		$181,500	$242,000
	(60,500*7)		(60,500*3)	(60,500*4)