Exercise 15-1 During its first year of operations, Pearl Corporation had the fol

Question

Exercise 15-1 During its first year of operations, Pearl Corporation had the following transactions pertaining to its common stock. Jan. 10 Issued 80,700 shares for cash at $6 per share Mar. Issued 5,000 shares to attorneys in payment of a bill for $37,300 for services rendered in helping the company to incorporate. July Issued 32,600 shares for cash at $8 per share Sept. 1 Issued 63,600 shares for cash at $10 per share. (a) Prepare the journal entries for these transactions, assuming that the common stock has a par value of $5 per share (b) Prepare the journal entries for these transactlons, assuming that the common stock is no-par wlth a stated 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 o for the amounts.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

a) Date Particulars Debit Credit 10-Jan Cash $ 484,200.00    Common Stock $ 403,500.00    Additional paid in capital $    80,700.00 1-Mar Professional services $    37,300.00     Common stock $    25,000.00    Additional paid in capital $    12,300.00 1-Jul Cash $ 260,800.00    Common Stock $ 163,000.00    Additional paid in capital $    97,800.00 1-Sep Cash $ 636,000.00    Common Stock $ 318,000.00    Additional paid in capital $ 318,000.00 b) Date Particulars Debit Credit 10-Jan Cash $ 484,200.00    Common Stock $ 161,400.00    Additional paid in capital $ 322,800.00 1-Mar Professional services $    37,300.00     Common stock $    10,000.00    Additional paid in capital $    27,300.00 1-Jul Cash $ 260,800.00    Common Stock $    65,200.00    Additional paid in capital $ 195,600.00 1-Sep Cash $ 636,000.00    Common Stock $ 127,200.00    Additional paid in capital $ 508,800.00 Date Particulars Debit Credit 42745 Cash =80700*6    Common Stock =80700*5    Additional paid in capital =80700*1 42795 Professional services 37300     Common stock =5000*5    Additional paid in capital =+D7-E8 42917 Cash =32600*8    Common Stock =32600*5    Additional paid in capital =32600*3 42979 Cash =63600*10    Common Stock =63600*5    Additional paid in capital =63600*5 b) Date Particulars Debit Credit 42745 Cash =80700*6    Common Stock =80700*2    Additional paid in capital =80700*4 42795 Professional services 37300     Common stock =5000*2    Additional paid in capital =+D25-E26 42917 Cash =32600*8    Common Stock =32600*2    Additional paid in capital =32600*6 42979 Cash =63600*10    Common Stock =63600*2    Additional paid in capital =63600*8

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