Ask Question
BusinessBusiness
15 March, 21:17

During its first year of operations, Whispering Winds Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 26,600 shares for cash at $6 per share. July 1 Issued 58,000 shares for cash at $7 per share. (a) Journalize the transactions, assuming that the common stock has a par value of $6 per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.

+1
Answers (1)
  1. 16 March, 01:06
    0
    (a)

    Jan 10

    Debit: Cash $159,600

    Credit: Common Stock $159,600

    July 1

    Debit: Cash $406,000

    Credit: Common Stock $348,000

    Credit: Paid in Capital $58,000

    (b)

    Jan 10

    Debit: Cash $159,600

    Credit: Common Stock $26,600

    Credit: Additional Paid in Capital $133,000

    July 1

    Debit: Cash $406,000

    Credit: Common Stock $58,000

    Credit: Additional Paid in Capital $348,000

    Explanation:

    (a)

    Jan 10

    Debit: Cash (26,600 shares x $6 per share) $159,600

    Credit: Common Stock (26,600 shares x $6 per share) $159,600

    To Record Issuance of 26,600 shares at $6 per share par value.

    July 1

    Debit: Cash (58,000 shares x $7 per share) $406,000

    Credit: Common Stock (58,000 shares x $6 per share) $348,000

    Credit: Paid in Capital (58,000 shares x $1 per share) $58,000

    To Record Issuance of 58,000 shares at $7 per share and excess paid in Capital in terms of Par Value.

    (b)

    Jan 10

    Debit: Cash (26,600 shares x $6 per share) $159,600

    Credit: Common Stock (26,600 shares x $1 per share) $26,600

    Credit: Additional Paid in Capital (26,600 shares x $5 per share) $133,000

    To Record Issuance of 26,600 shares of no-par common stock with $1 stated value for $6 per share.

    Note: In the above scenario, the legal capital of company would be $26,600, because no-par common stock has a stated value.

    July 1

    Debit: Cash (58,000 shares x $7 per share) $406,000

    Credit: Common Stock (58,000 shares x $1 per share) $58,000

    Credit: Additional Paid in Capital (58,000 shares x $6 per share) $348,000

    To Record Issuance of 58,000 shares of no-par common stock with $1 stated value for $7 per share.

    Note: In the above scenario, the legal capital of company would be $58,000, because no-par common stock has a stated value.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “During its first year of operations, Whispering Winds Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 26,600 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
A partial listing of costs incurred during december at gagnier corporation appears below: factory supplies $28,000 administrative wages and salaries $125,000 direct materials $173,000 sales staff salaries $88,000 factory depreciation $69,000
Answers (1)
Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan withdraws the accumulated amount of money.
Answers (1)
The first step in transferring journal entry amounts to ledger accounts involves
Answers (1)
People end up tossing 12% of what they buy at the grocery store (Reader's Digest, March, 2009). Assume this is the true population proportion and that you plan to take a sample survey of 540 grocery shoppers to further investigate their behavior.
Answers (1)
An example of price discrimination is A. a golf course charging higher prices for weekend tee minus times than for weekday tee minus times. B. an airline charging higher prices for business travelers than for leisure travelers. C.
Answers (1)
New Questions in Business
A natural monopoly's preemption of entry by other firms by exploiting its economies of scale is an example of
Answers (2)
The best way for a franchisee and franchisor to evaluate each other is Question options: for the potential franchisee to go to a sales presentation. for the potential franchisee to spend time working in a franchise location.
Answers (1)
Ronald Reagan believed that reducing income tax rates would A. raise economic well-being and perhaps even tax revenue. B. lower economic well-being, even though tax revenue could possibly increase. C. do little, if anything, to encourage hard work.
Answers (1)
Unlike niche-oriented shopping bots, broad-based shopping bots: select one: a. give pricing power to the retailers. b. search for prices for only one type of product. c. operate using a yellow pages type of model. d.
Answers (1)
What are the pros and cons of Toyota's structure and what are the most important elements of Toyota's organizational structure?
Answers (1)
Home » Business » During its first year of operations, Whispering Winds Corp. had these transactions pertaining to its common stock. Jan. 10 Issued 26,600 shares for cash at $6 per share. July 1 Issued 58,000 shares for cash at $7 per share.
Sign Up Forgot Password?