Chapter 11, Problem 11.1E

(a)

To determine

Common stock: These are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investor receives a share of profit from the profits earned by the corporation.

Par value: It refers to the value of a stock that is stated by the corporation’s charter. It is also known as face value of a stock.

No-par common stock: The common stock that is issued at its fair market value is known as no-par common stock. Common stocks are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investor receives a share of profit from the profits earned by the corporation.

To Journalize: the issuance of common stock transaction at a par value of $5 per share for Corporation M on January 10.

To determine

To Journalize: the issuance of common stock transaction at $7 per share for Corporation M on July 1.

(b)

To determine

To Journalize: the issuance of common stock transaction at no-par value with a stated value of $1 for Corporation M on January 10.

To determine

To Journalize: the issuance of common stock transaction at no-par value with a stated value of $1 for Corporation M on July 1.