Question -
During its first year of operations, Pharoah Corporation had the following transactions pertaining to its common stock.
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Jan. 10
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Issued 80,400 shares for cash at $7 per share.
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Mar. 1
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Issued 5,000 shares to attorneys in payment of a bill for $36,500 for services rendered in helping the company to incorporate.
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July 1
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Issued 33,000 shares for cash at $9 per share.
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Sept. 1
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Issued 63,100 shares for cash at $11 per share.
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(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 transactions, assuming that the common stock is no-par with a stated value of $2 per share.