Exercise 11-1 During its first year of operations, Indigo Corporation had these

Question

Exercise 11-1 During its first year of operations, Indigo Corporation had these transactions pertaining to its common stock. Jan. 10 Issued 27,000 shares for cash at $4 per share. July 1 Issued 60,000 shares for cash at $9 per share. (D) aze the transactions, assuming that the common stock sano par wtb e stosted aiue of si per share. (b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share. (Record journal entries in the order presented in the problem. 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 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit

Explanation / Answer

SOLUTION

S.No. Date Account titles and Explanation Debit ($) Credit ($) A1. Jan.10 Cash 108,000 Common stock (27,000 * $4) 108,000 (to record the issuance of 27,000 shares with par value 4) A2. July 1 Cash (60,000*$9) 540,000 Common stock (60,000*$4) 240,000 Paid in capital in excess of par-common stock 300,000 (To record issue of 60,000 shares with par value of $4 at $9 per share) B1. Jan.10 Cash (27,000* $4) 108,000   Common stock (27,000*$1) 27,000 Paid in capital in excess of par-common stock 81,000 (To record issue of 27,000 shares with stated value of $1 at $4 per share) B2. July 10 Cash (60,000*$9) 540,000 Common stock (60,000*$1) 60,000 Paid in capital in excess of par-common stock 480,000 (To record issue of 60,000 shares with par value of $1 at $9 per share)

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