Acompany is authorized to issue 750,000 shares of $5 par value common stock. prepare journal entries to record the following selected transactions that occurred during the company's first year of operations:
jan. 10 sold 102,000 shares of common stock for $8 cash per share.
jan. 15 exchanged 10,000 shares of common stock for equipment with a market value of $80,000.
feb. 1 exchanged 500 shares of common stock for $3,000 of legal services incurred during the company's organization.

The answers are:

January 10

Cash                                          $816,000

Common stock                                                  $510,000

Contributed capital in excess

of par value, common stock                             $306,000

January 15

Equipment                                   $80,000

Common stock                                                    $50,000

Contributed capital in excess

of par value, common stock                               $30,000

February 1

Organizational expenses              $3,000

Common stock                                                    $25,000

Contributed capital in excess

of par value, common stock                                    $500

Explanation:

Contributed capital in excess of par value is the amount of money (or other assets) over the par value of stock (in this case $5 per common stock) that the company received form shareholders in exchange for stock.

answer; ///i believe that the correct answer is (a) it is the means by which a person earns money;

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