Practice Exercise 15-1 During its first year of operations, Crane Company had th

Question

Practice Exercise 15-1 During its first year of operations, Crane Company had the following transactions pertaining to its common stock. Jan. 5 Issued 53,000 shares for cash at $5 per share Aug.1 Issued 18,000 shares for cash at $8 per share. Spt20ers totaled Issued 4,000 shares and paid $50,000 in cash to a vendor in exchange for computers. The list price of the Dec. 19 Issued 42,000 shares for cash at $9 per share. Prepare the journal entries for these transactions, assuming that the common stock has a par value of $2 per share. (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) Date Account Titles and Explanation Debit Credit Prepare the journal entries for these transactions, assuming that the common stock is no-par with a stated value of $4 per share. (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 o for the amounts.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Date Account titles & Explanations Debit Credit 5-Jan Cash 53000*5 265000 Common stock 53000*2 106000 Paid in capital in excess of par 159000 1-Aug Cash 18000*8 144000 Common stock 18000*2 36000 Paid in capital in excess of par 108000 20-Sep Computers 105,000 common stock 4000*2 8000 paid in capital in excess of par 47,000 Cash 50,000 19-Dec Cash 42000*9 378000 Common stock 42000*2 84000 Paid in capital in excess of par 294000 Date Account titles & Explanations Debit Credit 5-Jan Cash 53000*5 265000 Common stock 53000*4 212000 Paid in capital in excess of stated value 53000 1-Aug Cash 18000*8 144000 Common stock 18000*4 72000 Paid in capital in excess of stated value 72000 20-Sep Computers 105,000 common stock 4000*4 16,000 paid in capital in excess of stated value 39,000 Cash 50,000 19-Dec Cash 42000*9 378000 Common stock 42000*4 168000 Paid in capital in excess of stated value 210000

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