E15-1 (LO1) Recording the Issuances of Common Stock During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock. DateNo. of Shares IssuedIssued forAmount Jan. 1080,000Cash $ 6.00per share Mar. 15,000To attorneys in payment of a bill for services rendered in helping the company to incorporate 35,000in total Jul. 130,000Cash 8.00per share Sept. 160,000Cash 10.00per share Instructions: (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.

The shares are issued by the company to the shareholders for investment in the business. The shares…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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E15-1 (LO1) Recording the Issuances of Common Stock
During its first year of operations, Collin Raye Corporation had the following transactions pertaining to its common stock.

	Date	No. of Shares Issued	Issued for	Amount
	Jan. 10	80,000	Cash	$ 6.00	per share
	Mar. 1	5,000	To attorneys in payment of a bill for services rendered in helping the company to incorporate	35,000	in total
	Jul. 1	30,000	Cash	8.00	per share
	Sept. 1	60,000	Cash	10.00	per share

Instructions:
(a)	Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share.

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