Question
Asked Nov 23, 2019
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During its first year of operations, Blue Spruce Corp. had these transactions pertaining to its common stock.

Jan. 10   Issued 27,300 shares for cash at $4 per share.
July 1   Issued 61,500 shares for cash at $7 per share.

 

(a)   Journalize the transactions, assuming that the common stock has a par value of $4 per share.
(b)   Journalize the transactions, assuming that the common stock is no-par with a stated value of $3 per share.
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Expert Answer

Step 1

The stock in which shareholders are entitled to received dividend whose amount may vary from time to time and at time it even gets missed is known as common stock.

Step 2

a) Journalizing while common stock ha...

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Accounts title and explanation Date Debit Credit $ 10th Jan Cash (27,300 x $4) Common stock (to record common stock issued at par) 109,200 109,200 430,500 1st July Cash (61,500 x $7) Common stock (61,500 x $4) Additional paid in capital (61,500 x $3) (to record issuance of common stock at value above par) 246,000 184,500

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Accounting

Journal and Ledger Balance

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