Answer and Explanation:
The journal entries are shown below:
1.
On Jan.10
Cash (26,300 shares × $4) $105,200
To Common stock $105,200
(Being the issuance of the common stock for cash is recorded)
On July 1
Cash (56,500 shares × $7) $395,500
To Common stock (56,500 shares × $4) $226,000
To Paid-in Capital in Excess of Par Value $169,500
(Being the issuance of the common stock for cash is recorded)
2.
On Jan.10
Cash (26,300 shares × $4) $105,200
To Common stock (26,300 shares × $1) $26,300
To Paid-in Capital in Excess of Stated Value $78,900
(Being the issuance of the common stock for cash is recorded)
On July 1
Cash (56,500 shares × $7) $395,500
To Common stock (56,500 shares × $1) $56,500
To Paid-in Capital in Excess of Stated Value $339,000
(Being the issuance of the common stock for cash is recorded)
