c15BExercises.qxd
1/28/13
1:23 PM
Page 1
B EXERCISES
3
E15-1B (Recording the Issuances of Common Stock) During its first year of operations, Endevor Corporation had the following transactions pertaining to its common stock.
Apr. 26
May 11
Aug. 1
Nov. 1
Issued 15,000 shares for cash at $4.50 per share.
Issued 10,000 shares to attorneys in payment of a bill for $48,000 for services rendered in helping
the company to incorporate.
Issued 20,000 shares for cash at $5 per share.
Issued 10,000 shares for cash at $7 per share.
Instructions
(a) Prepare the journal entries for these transactions, assuming that the common stock has a par value
of $1 per share.
(b) Prepare the journal entries for these transactions, assuming that the common stock is no par with
a stated value of $3 per share.
3
E15-2B (Recording the Issuance of Common and Preferred Stock) National Gas Corporation was
organized on June 1, 2014. It is authorized to issue 100,000 shares of 5%, $100 par value preferred stock,
and 1,750,000 shares of no par common stock with a stated value of $1 per share. The following stock
transactions were completed during the first year.
June 15
June 30
Aug. 15
Issued 165,000 shares of common stock for cash at $5 per share.
Issued 25,000 shares of preferred stock for cash at $102 per share.
Issued 20,000 shares of common stock for a factory building. The asking price of the factory building
was $150,000; the appraised value of the factory building was $140,000.
Sept. 1 Issued 200,000 shares of common stock for cash at $7 per share.
Oct. 1 Issued 5,000 shares of common stock to attorneys in payment of their bill of $40,000 for services
rendered in helping the company organize.
Oct. 15 Issued 25,000 shares of common stock for cash at $8.50 per share.
Nov. 1 Issued 6,000 shares of preferred stock for cash at $104 per share.
Instructions
Prepare the journal entries to record the above transactions.
3
E15-3B (Stock...